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FOMRRA Seeks GST relief for homeowners associations

admin_adyar by admin_adyar
April 3, 2025
in News
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FOMRRA Seeks GST relief for homeowners associations
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The Federation of OMR Resident Associations (FOMRRA) has called for immediate Goods and Services Tax (GST) relief for Resident Welfare Associations (RWAs) across India. This request follows the recent progressive budget presented by Finance Minister Ms. Nirmala Sitharaman, which aimed at offering tax relief to salaried individuals and easing financial pressures on middle-class families.

In its letter to the Finance Minister, FOMRRA commended the government’s tax relief measures for salaried citizens and requested similar relief for RWAs. These associations, which operate as non-profit bodies, are responsible for maintaining vital community infrastructure and services.

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The key points of FOMRRA’s appeal include:

  1. Exempt Essential Charges from GST: FOMRRA is urging the government to exclude essential services like electricity, water, and diesel (for generators) from the GST calculation in maintenance charges for RWAs.
  2. Increase the Exemption Limit for maintenance charges: Given the rising costs of essential services, FOMRRA is requesting an increase in the GST exemption limit for maintenance charges to Rs. 22,500.
  3. Exempt Non-Profit RWAs from GST: As non-profit organizations that function as pure agents under the GST framework, FOMRRA argues that RWAs should be exempt from GST obligations.

Why it Matters

In its press release, FOMRRA emphasized the significance of these changes, explaining that they would not only ease the financial burden on homeowners but also allow RWAs to continue their vital work in maintaining community services and infrastructure. 

FOMRRA represents over 200 RWAs and more than 50,000 homes along Chennai’s Old Mahabalipuram Road, a major IT corridor. These associations play a crucial role in promoting community welfare through initiatives such as voter participation, solid waste management, and rainwater harvesting.

FOMRRA is hopeful that the government will consider their request in the spirit of the recent budget, which aimed to uplift the economic well-being of the middle class. 

Tags: GST ExemptionGST ReliefHomeownersassociationNIrmala SitharamanRWATAX Relief
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