The Kerala Cooperative Employees’ Council (KCEC) has urged both the Central and State governments to immediately withdraw the move to impose Goods and Services Tax (GST) on services rendered by cooperative societies to their members. The resolution was passed during the KCEC State Conference held at the Thrissur Town Hall on Sunday.

The council stressed that services provided by cooperative societies, which operate on the principle of mutuality and not for profit, cannot be interpreted as taxable transactions between a seller and a buyer. Such services, offered solely for the benefit of members in a spirit of mutual aid, should not be treated as commercial transactions attracting GST.

The move to bring these services under the GST regime was described as unjust and regressive. It threatens to further burden the cooperative sector, which is already navigating multiple challenges to remain viable, the KCEC Conference pointed out.

Source: The Hindu