The decision to levy 18% GST on maintenance or electricity charges paid by the apartment owners in Noida’s housing societies arrived under the Uttar Pradesh tax department, is opposed by the apartment owners’ associations (AOAs).
This decision of the government complies with the law; AOAs have objected to the tax, claiming that the maintenance or electricity charges collection does not constitute a commercial activity to invite such tax.
The tax department has given notices to 25 housing societies, including the Sector 45-based Prateek Stylome housing complex, Antriksh society in Sector 78, and Prateek Wisteria in Sector 77, among others, questioning AOA office-bearers to be present personally and also provide the records since 2019-20.
The rule of the GST is that if you take power supply from the government and then supply it with a profit, then you should file 18% GST. However, GST does not justify it if you do not do the same for profit.
AOAs are permitted by the government to raise .5% cost per unit of electricity to recover the line loss. Tax officials consider .5% other amount as profit and desire us to pay Rs 50 lakh GST. It is a big burden, an AOA member of Antriksh society, who urged anonymity, mentioned.
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In recent months, the Uttar Pradesh tax department has been actively conducting on-site inspections of various residential society complexes. The main goal of these audits is to assess whether Apartment Owners’ Associations (AOAs) are generating unauthorised profits or imposing electricity rates on residents that exceed the government-regulated supply tariffs. This initiative aims to ensure compliance with regulations and protect residents’ rights.
The AOAs asked for the assistance of MP Dr Mahesh Sharma and Noida MLA Pankaj Singh in the matter. No tax officials were present for a comment.
