RWAs knock GST Council door, seek exemption on maintenance charges
Hyderabad: Several Resident Welfare Associations (RWAs) have approached the GST Council seeking exemption from GST on maintenance charges collected from residents.
The associations stated that RWAs function on a no-profit, no-loss basis and the charges collected are used only for maintenance and common services. They argued that these charges should not be treated as taxable services.
They also pointed out that residents are already paying property tax and GST is charged on various services used by RWAs, leading to double taxation.
With rising maintenance costs, many RWAs have crossed the GST threshold, making them liable to pay 18% GST, which increases the financial burden on residents.
RWAs have initiated a signature campaign to gather support and plan to submit their representation to the GST Council and concerned authorities.
They have demanded that maintenance charges collected by RWAs be exempted from GST, considering them as contribution towards common expenses rather than a commercial activity.
