Noida AOAs Oppose 18% GST on Maintenance Charges

• AOAs object to 18% GST on maintenance and electricity charges

• Tax notices sent to 25 housing societies across Noida

• Residents argue charges are non-commercial and non-profit

Noida: The issue of GST on maintenance charges has triggered strong opposition from apartment owners’ associations (AOAs) across Noida, with residents questioning the logic of taxing non-profit activities within housing societies.

The Uttar Pradesh tax department has issued notices to around 25 housing societies, asking AOA office-bearers to appear personally and submit financial records dating back to 2019–20. Among the societies served notices are Prateek Stylome (Sector 45), Antriksh Society (Sector 78), and Prateek Wisteria (Sector 77).

According to AOAs, the 18% GST on maintenance and electricity charges is being wrongly imposed, as these collections are meant only to cover basic operational costs such as power supply, lift maintenance, security, and common area upkeep. They argue that housing societies do not function as profit-making entities and should therefore be exempt from such taxation.

A key point of contention is the 0.5% additional charge per unit of electricity, which AOAs are legally allowed to collect to recover line losses. Tax officials, however, are reportedly treating this marginal increase as “profit,” making societies liable for GST.

“The rule clearly says GST applies if electricity is resold for profit. We are not making any profit. The 0.5% charge is only to recover losses. Yet, we are being asked to pay nearly ₹50 lakh as GST, which is a massive burden for residents,” said an office-bearer of Antriksh Society, requesting anonymity.

Over the past three months, tax department teams have been visiting residential complexes to audit financial records and assess whether AOAs earned surplus income over government electricity rates. This has added to concerns among residents, many of whom fear retrospective tax liabilities.

Seeking relief, AOAs have approached Gautam Buddh Nagar MP Dr Mahesh Sharma and Noida MLA Pankaj Singh, urging them to intervene and clarify the applicability of GST on maintenance charges for housing societies.

While the government maintains that the levy is legally valid, tax officials were unavailable for comment. Meanwhile, residents say the uncertainty around GST on maintenance charges has created anxiety and could significantly increase the financial burden on middle-class homeowners if the issue is not resolved soon.