The Visakhapanam Apartment Residents’ Welfare Association (VARWA) has urged Union Minister of State for Housing and Urban Affairs Hardeep Singh Puri to abolish GST on maintenance charges of apartment complexes, saying that it is adding to the burden of residents.

Referring to the Finance Ministry’s recent clarification, VARWA general secretary B.B. Ganesh said apartment owners need to pay a GST of 18 % if their monthly maintenance charges to the Residents’ Welfare Association (RWA) exceed ₹7,500 per month and even otherwise, the RWA should pay GST at that rate, if its turnover exceeds ₹20 lakh per annum.

Maintenance charges are collected by RWAs for meeting common expenses such as wages to security guards, sweepers, cleaners, gardeners, telephone and intercom service, electricity charges, municipal water, house-keeping, repairs and maintenance and etc., he said.

‘Additional burden’

“The RWAs pay GST on common expenses through the telecom service provider, intercom provider, man power agency and etc. Levying it on maintenance charges leads to double payment by apartment owners. GST on maintenance charges is taxing internal services of apartments many of which are supposed to be provided by civic bodies or government departments. But, the RWAs are providing them,” Mr. Ganesh contended.

Many people live in apartment complexes and gated communities for higher security and other services which are being provided by the RWAs. Paying charges for these would entail higher maintenance charges which in turn would bring RWAs into GST bracket, Mr. Ganesh said in an appeal sent to the Minister.

He said some apartment complexes provide shelter exclusively to senior citizens charging high amounts towards maintenance and it is unjust to levy GST on them, he opined. Mr. Ganesh sought the Minister’s intervention to ensure that GST on maintenance charges of apartments is abolished or at least senior citizens are exempted from it. He urged the Minister to take up the issue with the Ministry of Finance. Besides the rate of GST on maintenance should be reduced from 18 % to 5 %, he requested.

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Source: The-Hindu