Representative image of GST collection.
Credit: iStock Photo
Bengaluru: The Bangalore Apartments' Federation (BAF) has urged the Centre to abolish the 18% GST levied on maintenance fees collected by Residents' Welfare Associations (RWAs) in apartment complexes.
In a petition, the federation said the tax places an undue financial burden on apartment owners and hampers the functioning of RWAs, which are self-help, non-profit bodies maintaining cleanliness, security, and infrastructure in their complexes. "Unfortunately, due to the imposition of the GST on maintenance fees, such efforts are hampered as additional costs are added to the already heavy financial commitments borne by the residents,” the petition said.
Currently, GST is applicable only if maintenance charges exceed Rs 7,500, a limit the federation termed arbitrary.
"We propose that the government reconsider this rule and either increase the exemption limit based on inflation and reduce the GST rate to a minimum percentage or abolish the GST for RWAs altogether,” it added.