Cooperative Society Registration

Multi-state cooperatives are governed by the Multi-State Co-operative Societies Act 2002 (MSCS Act); single-state societies fall under the respective State Co-operative Societies Act. The MSCS Act requires a minimum of 50 individual members from each of at least two states (Section 6, MSCS Act 2002). Most state acts require 10 to 25 members depending on the society category. The application for a multi-state cooperative goes to the Central Registrar of Co-operative Societies under Section 7 of the MSCS Act 2002.

For a multi-state cooperative, the filing under Section 7 of the MSCS Act 2002 includes the proposed bye-laws, list of promoter members with their occupations and addresses, proof of registered office, and a declaration by the chief promoter. For state-level societies, the application goes to the Registrar of Co-operative Societies of the relevant state under the applicable state act, typically with the state-prescribed Form A, a copy of the bye-laws, and a bank certificate confirming minimum share capital deposit.

Yes. Section 80P of ITA 1961 (applicable for AY 2026-27, i.e. FY 2025-26 income) provides a full deduction on income of cooperative societies engaged in cottage industries, banking, credit facilities to members, or marketing of agricultural produce. The deduction is subject to the society not being a cooperative bank as defined under Section 80P(4). For TY 2026-27 onwards under ITA 2025, Section 80P continues to apply. Cooperative societies may also opt for the concessional 22% rate under Section 115BAD of ITA 1961 for AY 2026-27, subject to not claiming specified deductions.

Yes, if aggregate turnover exceeds Rs. 20 lakh per financial year (Rs. 10 lakh for specified special category states), registration is mandatory under Section 22 of the CGST Act 2017. Cooperative housing societies collecting maintenance charges exceeding Rs. 7,500 per member per month are liable to register and pay GST at 18% on the amount exceeding Rs. 7,500 per Notification No. 12/2017-Central Tax (Rate) as amended. Cooperative credit societies providing loans to members may be exempt from GST under Entry 27 of Notification No. 12/2017-Central Tax (Rate).

A registered cooperative must hold an Annual General Meeting within six months of the close of each financial year (Section 75, MSCS Act 2002 or the equivalent state provision), file audited accounts with the Registrar, and get accounts audited by an auditor empanelled with the Co-operative Audit Department or appointed per the bye-laws. Under the MSCS Act, the Central Registrar may direct a special audit under Section 69. Failure to file returns or hold AGMs attracts penalties under Section 143 of the MSCS Act 2002. Income tax returns must be filed under ITA 1961 Section 139 (ITA 2025 Section 263 from TY 2026-27) by October 31 where audit applies.