Bengaluru: As the GST Council meeting began deliberations on revising tax slabs on Wednesday, the Bangalore Apartments’ Federation (BAF) has launched an online petition demanding the abolition of the 18 per cent GST levied on apartment maintenance charges.
The federation, which represents thousands of apartment residents across the city, has argued that the levy places an undue burden on middle-class families and non-profit community groups.
Petition against 2019 notification
The petition, hosted on Change.org, points to a 2019 notification which made GST applicable on monthly maintenance charges collected by Residents’ Welfare Associations (RWAs) if such charges exceed Rs 7,500 per unit.
“The increase in living expenses hits middle-class families the hardest, forcing them to compromise on essential needs,” the petition said.
RWAs as non-profit groups
BAF President Satish Mallya explained that RWAs and Apartment Owners’ Associations (AOAs) are voluntary, non-profit organisations, elected by residents to manage community needs such as cleanliness, security, and infrastructure upkeep.
“Imposing 18 per cent GST on maintenance makes it harder for residents to fulfil these responsibilities alongside their existing financial commitments,” he said, stressing that residents do not get any input tax credit for the GST they pay.
He further termed the Rs 7,500 threshold arbitrary, pointing out that it does not account for regional variations in living costs. The federation has urged the government to either raise the exemption limit in line with inflation or completely abolish GST for RWAs.
Original intent of GST questioned
The petition stated that while GST was introduced to streamline indirect taxes and make essential goods affordable, its application to community maintenance charges undermines the principle by penalising collective self-governance.
Centre criticised over revenue data
Meanwhile, Karnataka Revenue Minister Krishna Byregowda criticised the Union government for withholding data on how the proposed GST changes will affect state revenues.
He pointed out that while independent analyses suggest states may collectively lose between Rs 85,000 crore and Rs 2.5 lakh crore, the Centre has not released any official projections.
“Unlike the Centre, which earns heavily from direct taxes and cesses, states depend primarily on GST to fund development and welfare programmes. Even a 20 per cent drop in revenue would seriously undermine economic autonomy,” Byregowda warned.