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2020 (4) TMI 692 - AAR - GSTGroup of lessors - Renting of residential premises - Exemption prescribed under entry number 13 of notification no. 9/2017- integrated tax (rate) dated. 28th June, 2017 - Levy of GST while issuing the invoice for the lease service to M/s. Dtwelve Spaces Pvt. ltd. - HELD THAT:- It is clear that the applicant is not providing the service in individual capacity to the lessee, but as a part of the group of lessors. The applicant has not provided any details of registration or constitution of the group, whether they have entered into a partnership or association etc. and hence the taxability of the transaction needs to be examined in this background. Entry 13, Heading 9963 or Heading 9972, is related to “renting of residential dwelling” “for use as residence” - The contract of the applicant group with the Company is verified and found that what is given is an immovable property consisting of only rooms with attache toilets as per the Layout of the leased premises annexed to the Lease agreement and does not fit into the meaning of a dwelling which means a house. They are like hotel rooms and the entire leased premises has 42 rooms, which can by no imagination be termed as a residential dwelling. The exemption prescribed under entry no. 13 of N/N. 9/2017 - Integrated tax (Rate) dated 28th June 2017 cannot be sought and the lessors (as an entity) have to charge GST while issuing the invoice for the lease services to M/s. DTwelve Spaces Pvt. Ltd, provided they are registered under the GST Act - The lease services does not fall under the exemption “Services by way of renting of residential dwelling for use as residence” as listed in entry 13 of Notification No. 9/2017 - Integrated tax (Rate) dated 28th June 2017.
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