According to Sanjeev Singh, GMC's chief tax assessment officer, a central government rule requires municipalities to levy service charges on government buildings for essential services like roads, water, drainage, and streetlights. In Ghaziabad, 69 state government properties owe a total of Rs.1.63 billion, with Rs.1.57 billion still unpaid. Additionally, 41 central government buildings have outstanding dues of Rs.2.80 billion, clearing only Rs.1.39 billion despite receiving notices.

Service tax is determined based on a building's valuation, with a 7% tax imposed on its annual rental value. GMC provides various amenities and charges between 33.5% and 75% of the annual rental value as a tax.

Previously, GMC issued notices to DMRC and NCRTC for unpaid dues; however, a government order exempted these agencies from municipal taxes.