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2020 (7) TMI 390 - AAR - GSTExemption from payment of GST - Renting of accommodation service - Residential property or commercial property - monthly rentals received by her on lease of her residential building at Telangana to D-Twelve Spaces Private Limited - exemption under SI.No.13 of the Notification No. 9/2017 Dt:28-6-2o17 - HELD THAT:- Reading the lease agreement (Exhibit-2) and “Residents Enrolment Form” (Exhibit- 3) together and also taking note of the various observations made above, it appears that apart from renting of the rooms, the inmates are also being provided with food and hospitality services. As verified from the records, the lessee is a registered Taxable Person - Though the applicant claims that she has rented out residential dwelling for use as residence, it appears that the premise is a non-residential property. Considering the number of rooms and amenities provided in it, boarding and hospitality services extended to the inmates and all the clauses of the agreements discussed above, it appears that the building was constructed for the purpose of running a lodge house. It is clear that the lessee is engaged in commercial activity of renting of rooms in the dwelling and providing boarding and hospitality services to the inmates. The lessor has rented out her dwelling for commercial activity, and supply of such services, in the facts and circumstances of the case, are classifiable as “Rental or leasing services involving own or leased non-residential property” under Service Code (Tariff) 997212. It is taxable in the hands of the lessor and is liable for IGST at the rate of 18 percent.
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