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TMI Blog2020 (4) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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. - KAR ADRG 17/2020 - - - Dated:- 23-3-2020 - DR. RAVI PRASAD M.P. AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by: Sri. Taghar Vasudeva Ambrish ORDER UNDER SECTION 98(4) OF THE CGST TAX ACT, 2017 UNDER 98(4) OF THE KGST ACT, 2017 1. Sri. Taghar Vasudeva Ambrish, #8/2, 36th Cross, 11 th A Main, 4th T Block, Jayanagar, Bengaluru, having GSTIN number 29AHKPA8401C1ZQ, have filed an application for Advance Ruling under Section 97 of the CGST Act,2017 read with Rule 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Services by way of renting of residential dwelling for use as residence are exempt from GST. e. Further M/s. D TweIve Spaces Pvt. Ltd. Has entered into sub lease agreement students for providing residential accommodations with living amenities, security, entertainment facilities for a long stay for a period varying from 3 months to Il months. Thereby, D TweIve has concluded that the rental accommodation services provided by D Twelve to the students will not attract GST. Consequently, there would be no GST obligation on D TweIve in case of lease arrangement with their lessor too (Here Ambrish Vasudeva and 4 others). Therefore, D Twelve is of the opinion that the lessor should not charge GST to D TweIve when issuing the invoice for the lease service. 5. Regarding the relevant facts that have a bearing on the questions raised, the applicant states as under: a. Schedule II enlists activities to be treated as supply of services. Entry 2 (b) reads as any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services. b. Section 2(17) of the CGST Act 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NDINGS DISCUSSION 7. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. T.V. Ambrish, Proprietor of the above concern appeared for the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 7.1 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 7.2 The copy of the lease deed entered between the lessors, of which the applicant is one of the them and the D twelve Spaces Private Limited (hereinafter called as Company ) shows that the lessors (totally five in number) have collectively leased out their premises to the Company by way of a single agreement. Each of the lessor has owns a part of the property and they have pooled up their properties and then leased it to the Company. Further, the agreement is a single agreement and the description o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l or residential complex for business or commerce, either wholly or partly, is a supply of services. b. Hence the lessor, of which the applicant is a part, is providing services of leasing of a building for business or commerce to the Company. The applicant is not individually providing this service, but as a group of persons they are providing the services, after pooling in their assets. As could be noticed from the agreement, the contract is not between the individuals and the Company, but between the group of individuals and the Company, which needs to be highlighted. -Since, the applicant is not providing service to the Company, but as a part of the group, for the transaction between the Group and the Company, invoice needs to be issued by the Group to the Company and the transaction between the individuals and the Group are a different transactions, as the individuals are distinct from the Group of Individuals. The exact nature of the group cannot be ascertained and it is not a question and hence it is not answered. It is suffice here only to rule that the question of charging or not charging GST for the transaction between the applicant and the Company does not ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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