- By Business Desk
- Fri, 05 Sep 2025 06:29 PM (IST)
- Source:JND
The Federation of Apartment Owners Associations (FAOA) announced it has formally submitted a comprehensive letter to the Ministry of Housing and Urban Affairs (MoHUA) and the Honourable Finance Minister, Nirmala Sitharaman. The letter urgently requests a review and relief regarding the applicability of Goods and Services Tax (GST) on monthly maintenance charges collected by Resident Welfare Associations (RWAs).
This crucial step comes after receiving numerous representations and concerns from various apartment owner associations across major Indian cities, including Gurugram, Bengaluru, and Noida, highlighting the significant financial burden faced by middle-class households.
FAOA firmly believes that apartment maintenance is a basic requirement for comfortable living, not a luxury. "At present, GST is applicable on monthly maintenance charges collected by RWAs when such charges exceed Rs 7,500 per member per month. This limit, which has not been revised for several years, is increasingly inadequate due to rising costs of goods, services, and general inflation," stated Sanjay Lal, President of FAOA.
"This substantially increases the monthly expenses for middle-class families, pushing a significant portion of their disposable income towards maintenance, rather than other essential needs," he added.
The letter outlines several key concerns:
- The current Rs 7,500/- limit no longer reflects the rising cost of basic services in housing societies.
- Unlike club memberships or spa fees, apartment maintenance is tied to safety and daily living.
- While life insurance and healthcare have been exempted from GST, housing maintenance, an equally essential service, has not received similar consideration.
To address these pressing issues, FAOA has proposed two key solutions:
- Complete Waiver of GST on monthly maintenance charges collected by RWAs, recognising these as essential community services rather than taxable commercial activities.
– Revision of the Threshold Limit from the present Rs 7,500 per month per member to at least Rs 15,000 per month, in line with current cost structures.
FAOA emphasises that such measures would provide direct financial relief to millions of small apartment owners across the country, put more disposable income in the hands of middle-class families, thereby boosting household consumption, and spur further investments into housing and real estate—a vital sector for India's economic growth and urban development.
"We believe that this step will be in harmony with the Government’s vision of supporting the middle class, strengthening housing infrastructure, and promoting inclusive urban growth," Lal added. "FAOA, along with RWAs nationwide, stands ready to extend full cooperation and to provide further inputs or data to assist in this policy revision."
FAOA looks forward to a positive and swift response from the government, ensuring a more equitable and sustainable living environment for apartment owners nationwide. The Federation of Apartment Owners Associations (FAOA) is an all-India body dedicated to guiding and protecting the rights and interests of apartment owners.
