Provide relief from GST on RWAs, OMR resident associations to FM Nirmala Sitharaman
As per the GST Act applicable to housing societies, no GST is payable on electricity, water, diesel (consumed for running a Diesel Generator set), or salaries to staff on the payroll, but these amounts are included in the overall limit as specified by the ACT;
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CHENNAI: The Federation of OMR Resident Associations (FOMRRA) wrote to Finance Minister Nirmala Sitharaman advocating for the immediate relief from Goods and Services Tax (GST) for Resident Welfare Associations across the country. It serves as an essential non-profit body responsible for maintaining community infrastructure and services.
As per the GST Act applicable to housing societies, no GST is payable on electricity, water, diesel (consumed for running a Diesel Generator set), or salaries to staff on the payroll, but these amounts are included in the overall limit as specified by the ACT.
“We request that the value of these charges be excluded when calculating the charges of maintenance,” the letter stated. “Increase the exemption limit for maintenance charges as the rising inflation and the increasing costs of essential services and limit should be raised to Rs 22,500. The non-profit associations operate strictly as pure agents under the GST framework and thus should be exempted from GST obligation.”
FOMRRA is an apolitical body that represents the interest of over 200 RWAs with over 50,000 homes, along the busy Old Mahabalipuram Road, the IT highway of Chennai.
