As the Goods and Services Tax (GST) Council meeting has started to revamp some of the GST slabs from Wednesday, the Bangalore Apartments’ Federation (BAF) has initiated a petition seeking the abolition of the 18 per cent GST levied on apartment maintenance charges. Members of the federation have stated that the notification issued in 2019 has imposed an undue financial burden on Residents’ Welfare Associations (RWAs), including apartment owners. The online petition started on change.org by BAF stated, “This notification states that GST is applicable on the entire monthly maintenance charges collected by Residential Welfare Associations (RWAs) if such charges exceed Rs 7500 per month per member or residential unit.” It highlighted that an increase in living expenses affects middle-class families the hardest, forcing them to adjust their budgets and compromise on their essential needs. The petition also said that while the intention behind GST was to streamline indirect taxes and make essential goods affordable, this particular application burdens those who rely on the collective efforts of RWAs to maintain their homes and communities. It noted that individual residents do not get any GST credit but have to pay GST at 18 per cent. Mallya added that the Rs 7500 threshold is arbitrary and does not take into account the varying costs of living across different regions and states. “We want the government to reconsider this rule and either increase the exemption limit based on inflation and reduce the GST rate.
https://www.livehomes.in/news_letter