We want to draw your kind attention to the significant impact of the GST Notification No. 109/28/2019-GST dated 22.07.2019. This notification states that GST is applicable on the entire monthly maintenance charges collected by Residential Welfare Associations (RWAs) if such charges exceed ₹7,500 per month per member or residential unit. 

This notification has placed an undue financial burden on members of RWAs, including apartment owners. An increase in living expenses affects middle-class families the hardest, forcing them to adjust their budgets and compromise on their essential needs. While the intention behind the Goods and Services Tax (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. Individual residents will not get any GST credit but has to pay GST @ 18% even this was collected on behalf  of association of people ( AOP )  for maintenance of common area property in a apartment complex

It is crucial to recognize that AOAs / RWAs are self help, non-profit organizations working towards maintaining their own residential complexes. The members (Owners) voluntarily elect these associations to ensure cleanliness, security, and infrastructural maintenance. 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 residents.

According to a report  over 50 million people in urban areas live in apartments / cooperative housing societies in India. This notification impacts a significant portion of the population, potentially affecting their quality of life. Besides, the ₹7,500 threshold is arbitrary and does not take into account the varying costs of living across different regions & states

We propose that the government reconsider this rule and either increase the exemption limit  based on inflation and reduce  the GST rate to minimum percentage or abolish the GST for RWAs altogether.

This matter need for an urgent reassessment  by your good office as it hits the core of the middle class who are struggling amid fluctuating economic conditions. 

Join us in urging the authorities to take necessary steps to relieve this financial strain. Sign this petition to help revise GST policies to ensure fairness and support community associations striving for well-maintained living conditions.

President,

Bangalore Apartment's Federation