FOMRRA asks GST relief for Homeowner Associations

The Federation of OMR Resident Associations (FOMRRA) has petitioned for immediate GST relief for Resident Welfare Associations (RWAs) across India. This appeal follows Finance Minister Ms. Nirmala Sitharaman’s recent progressive budget, which aimed to provide tax relief to salaried individuals while also alleviating financial burdens on middle-class families.

In a letter to the Finance Minister, FOMRRA praised the government’s tax relief initiatives for salaried citizens and asked for comparable relief for RWAs. These non-profit organisations are responsible for preserving critical community infrastructure and services.

The main points of FOMRRA’s appeal are:

Exempt Essential Charges from GST: The FOMRRA is pushing the government to exempt basic services such as electricity, water, and diesel (for generators) from GST calculations in RWA maintenance charges.

Increase the Exemption Limit for Maintenance Charges: Given the escalating cost of basic services, FOMRRA is seeking that the GST exemption limit for maintenance charges be increased to Rs. 22,500.

Non-profit RWAs to be exempt from GST: FOMRRA contends that RWAs should be free from GST obligations because they are non-profit organisations that operate solely as agents under the GST framework.

Why this GST Exemption Matters?

FOMRRA emphasised the importance of these reforms in its press release, stating that they will not only relieve homeowners’ financial burdens but also help RWAs to continue their crucial task of maintaining community services and infrastructure.

FOMRRA represents more than 200 RWAs and 50,000 residences on Chennai’s Old Mahabalipuram Road, a key IT corridor. These organisations play an important role in improving community welfare through activities including voter participation, solid waste management, and rainwater collection.

FOMRRA hopes that the government will consider their request in the spirit of the recently passed budget, which aims to improve the economic well-being of the middle class.