Withdraw GST on Cooperative Services: Employees’ Council Urges

1.Who raised the concern?

Kerala Cooperative Employees’ Council (KCEC)

A body representing employees of cooperative institutions in Kerala.

Held its State Conference at Thrissur Town Hall.

2. What is the issue?

The Central and State governments are considering levying GST on services provided by cooperative societies to their own members.

3. Why is KCEC opposing this move?

Principle of Mutuality:

Cooperative societies function on a mutual help basis — services are not for profit and are rendered by members to fellow members.

This mutual exchange is not the same as a commercial transaction between unrelated parties.

4. How would GST affect the cooperative sector?

Additional Financial Burden:

Imposing GST would mean extra compliance costs, taxation, and operational pressure.

Most cooperatives are already financially strained, especially in rural and semi-urban areas.

5. KCEC's stance and resolution

The KCEC passed a formal resolution during their conference:

Urging immediate withdrawal of the GST proposal.

Declaring it unjust, regressive, and harmful to the spirit and functioning of cooperatives.

6. Broader Implication

The move may discourage small member-driven cooperatives and weaken the cooperative movement, which plays a key role in rural finance, agriculture, and social welfare in India.