Bengaluru: The Union Finance Ministry order on collection of 18 per cent GST on flat owners paying monthly maintenance charges over Rs 7,500 has drawn flak from various Resident Welfare Associations, flat owners and the Confederation of Real Estate Developers Association (CREDA1), Bengaluru Chapter here.
Govt must not apply this
Reacting to this order, General Secretary of Bengaluru Federation of Apartment (BFA) Srikanth urged the Union Government to withdraw this order as it is not a wise decision to collect 18 per cent GST from flat owners for maintenance charges. “We don’t accept this order. Moreover, the government should come to know that Resident Welfare Association (RWAs) is not a profit -making organization. No third party or agency is collecting maintenance charges. Flat owners and RWAs have mutual understanding and get the services. Government shouldn’t impose GST on maintenance charges and exempt it just like it exempted flat owners from paying Income Tax”, he said. He said maintenance charge covers the cost incurred on amenities such as common areas, elevators, terraces, security, parking areas, swimming pool expenses for building repairs covering all the charges for new additions and other structural changes, water charges, insurance premium charges and electricity. However, government should not collect GST for this service.
CREDAI opposes
Suresh Hari, Chairman of Confederation of Real Estate Developers Association of India(CREDAI), Bengaluru chapter said,“On one hand, the Union Government says it has to ensure affordable housing to people. On the other hand, it imposes GST on flat owners which deter buyers. The move will affect flat owners residing in over 30,000 apartments in Bengaluru”, he said.
Such order also affects the growth and to fulfill the housing needs of the people when the city is growing vertically by construction of apartments, he added.
