As discussions have begun on revising certain tax slabs, a group representing apartment residents has started a petition seeking the removal of the 18 per cent Goods and Services Tax (GST) imposed on apartment maintenance charges. Members of the group noted that a notification issued in 2019 has placed an undue financial burden on residential associations and apartment owners.

The petition states that GST is currently levied on the full monthly maintenance charges collected by residential associations if the amount exceeds ?7,500 per month per household. It further highlights that rising living expenses are particularly challenging for middle-class families, who are often forced to adjust their budgets and cut back on essential needs.

The petition also explains that although GST was introduced to streamline indirect taxes and make essential goods more affordable, its application to residential maintenance charges creates hardship for those who depend on collective residential management for the upkeep of their homes and surroundings. It also points out that individual residents do not receive any GST input credit but still pay tax at the rate of 18 per cent.

The petition further argues that the ?7,500 threshold is arbitrary and does not reflect variations in living costs across regions. It urges the authorities to reconsider the rule, raise the exemption limit in line with inflation, and reduce the applicable GST rate.

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