GST on Membership fee collected online?

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aakash goud (Querist)

11 February 2021 Hello, I'm starting an online Home services startup that offers blue-collar services like Maids, Cooks, Home-tutors, Plumbers, etc. I'm also planning to collect a membership fee from the users. How much is the GST for membership fee? and How much is GST for Online Home Services. I read in Articles that the Government revised the GST for Online Home service providers like UrbanCompany and Housejoy, from 18% to 5%. Is that applicable to everyone?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

07 July 2024 As of my last update, GST rates for online home services and membership fees are as follows:

1. **GST for Online Home Services:**
- Online home services, including those provided by platforms like UrbanCompany and Housejoy, fall under the category of "Online Information and Database Access or Retrieval Services" (OIDAR).
- The GST rate applicable to OIDAR services, including online home services, is 18%.

2. **GST for Membership Fees:**
- Membership fees charged by your startup will also attract GST. The applicable GST rate for membership fees is 18%.
- This rate applies unless there are specific exemptions or changes introduced by the government, which would require checking the latest GST notifications.

Regarding the revision you mentioned from 18% to 5% for online home services, it's crucial to verify the latest GST notifications and circulars from the GST authorities. As of now, the standard rate remains at 18% for OIDAR services, including online home services. Changes in GST rates are typically announced through official notifications by the GST Council.

For accurate and updated information regarding GST rates applicable to your startup's services, including any potential changes or exemptions, I recommend consulting with a GST consultant or tax advisor who can provide tailored advice based on the most current regulations and notifications.

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