Govt buildings in Bengaluru among biggest defaulters, owe Rs 473cr in service tax

BENGALURU: Govt buildings in Bengaluru have emerged among the city's biggest service tax defaulters, collectively owing nearly Rs 472.7 crore in unpaid charges, sparking sharp criticism over selective enforcement of tax collection by civic authorities.

Disclosing this, N R Ramesh, the former opposition leader in the erstwhile BBMP council (now Greater Bengaluru Authority), said: "Before auctioning properties of middle and lower middle-class citizens over small tax dues, authorities must act against these govt buildings that owe nearly Rs 473 crore. Why is there no action against these major defaulters?"

Across zones, the highest arrears are from the East Zone (Rs 246.4 crore), followed by Yelahanka (Rs 67.5 crore), Rajarajeshwari Nagar (Rs 57.5 crore), Mahadevapura (Rs 39.1 crore) and South Zone (Rs 33.7 crore).

Reacting to this latest revelation, GBA chief commissioner Maheshwar Rao said: "The matter is being examined, and appropriate steps will be taken to ensure recovery in accordance with the law."

Data highlights that key administrative centres — including Vidhana Soudha, Vikasa Soudha, Raj Bhavan, Kumarakrupa Guest House and a multistoreyed govt complex — cumulatively account for Rs 14.9 crore in pending dues, with non-payment reportedly continuing since 2008-09.

Senior GBA officials preferring anonymity confirmed the quantum of service charges due from govt buildings, as disclosed by Ramesh, is true.

Buildings exempted from paying property tax are required to pay service charges.

Ramesh alleged that while citizens with property tax dues as low as Rs 50,000 to Rs 5 lakh face property attachment and auction, large defaulters — including govt departments, tech parks and commercial establishments — are spared strict enforcement.

Calling for accountability, Ramesh urged the civic body to issue legal notices and consider sealing or attaching govt properties to recover dues.

"If there is a genuine intent to improve the financial health of civic bodies, let them begin with govt establishments. The same law must apply to everyone," Ramesh added.

GBA officials indicated that coordination with state departments is on, with demand notices and reconciliations being pursued.