Seeking relief from the 18% GST on maintenance charges, several resident welfare associations (RWAs), including the Federation of Gated Communities Cyberabad, Tellapur Neighbourhood Association and United Federation of RWAs (UFRWAs), have written to the GST Council in New Delhi for exemption.
In their representation, the RWAs highlighted that rising living costs and increasing maintenance expenses have pushed many housing societies into the GST bracket, adding to the financial burden on residents.
They argued that RWAs are non-profit, community-driven bodies that function on a no-profit, no-loss basis, managing essential services such as security, housekeeping and infrastructure maintenance. Imposing GST on these services amounts to double taxation, as residents are already paying property taxes and other statutory levies.
RWAs also pointed out that the 20 lakh annual turnover threshold is easily crossed by most housing societies due to their size and rising operational costs. They stressed that maintenance collections are not commercial revenue but pooled contributions from residents for shared expenses. They have urged the govt to exclude maintenance charges from GST, recognising them as cost-sharing arrangements without any profit element.
“When residents pool their own money for services like security or cleaning, it cannot be treated as a commercial transaction. It is simply collective spending for common needs. Exempting RWAs will not significantly impact govt revenue but will provide much-needed relief to citizens,” said president of the Federation of Gated Communities, Cyberabad.
RWAs said they plan to meet officials from the Union ministry of finance and GST authorities to press for their demand for exemption. In areas like Tellapur and Osmansagar, around 30 gated communities housing nearly 25,000 units exist, of which nearly 40% are already paying GST.
A few RWAs have also launched a signature campaign opposing the GST levy. So far, they have gathered around 10,000 signatures and are targeting 50,000 to strengthen their appeal.
Source from: https://timesofindia.indiatimes.com/city/hyderabad/rwas-knock-gst-council-door-seek-exemption-on-maintenance-charges/articleshowprint/130095267.cms
