Noida: The Goods and Service Tax (GST) Council, through a notification, has clearly said that non-profit entity, which is registered under any law, has been spared from the levy of GST for providing service to its own members by way of reimbursement of charges of shares paid by the end user. The the council has also doubled the exemption of service tax in the levy of GST to Rs 20 lakhs from Rs 10 lakh for non-profit entity.

It means residents welfare associations or apartment owners association, which is non-profit entity, and it provides service to its members on payment of share of the service, will continue to enjoy the service tax exemption with their aggregate turnover of Rs 20 lakhs in the corresponding financial year.

It has also spared individuals whose share of contributions don’t exceed Rs 5000 per household per month in a housing society for sourcing of goods or services from the third party for common use of its members. 

According an officer with Central Excise and Customs in Noida, in case the amount of aggregate turnover exceeds Rs 20 lakh in a financial year, the RWA will come under composition scheme, an alternate method of levy tax payable by small taxpayers.