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TMI Blog2023 (3) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... or not and what shall be the GST implication if the same is being used as guest house by the Applicant? In the instant case, the Applicant has stated that it has taken on rent certain premises at New Delhi and Jajpur in Odisha, for use as guest house. The guest house is used to provide food and accommodation for the employees of the company. From the written submission made, contentions advanced by the representatives of the Applicant company and rent agreement copies furnished, the nature of rented properties under discussion clearly appear to be residential properties used for commercial purpose. Thus, it may be concluded that irrespective of the purpose of use, if the residential dwelling is rented to a registered person under GST, the tenant has to discharge the GST liability under RCM as per Notification No. 05/2022 Central Tax (Rate) dated 13th July 2022. - 04/ODISHA-AAR/2021-22 - - - Dated:- 2-2-2023 - SRI GOPAL KRISHNA PATI, IRS, AND SRI P K MOHANTY, OFS(SS), MEMBER Present for the Applicant in the Personal hearing. : R K Sahoo, Sr General Manager A K Sahoo, Manager Subject: M/s. Indian Metals and Ferro Alloys Limited (herein after referred to as the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling in clause 4.13.1 by interpreting the term in normal trade parlance as any residential accommodation, but does not include hotel, motel, inn, guest house, camp - site, lodge, houseboat, or like places meant for temporary stay. 2.3 It has been submitted that on normal course of business, the Applicant has taken a house on rent for use as its guest house at New-Delhi. As the term guest house is not covered within the ambit of residential dwelling as provided in education guide, the service provider at New-Delhi used claim GST on its invoice under forward charge mechanism which is paid by the Applicant. Notification No. 04/2022- Central Tax (Rate) dated 13.07.2022, amended the clause 12 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 thereby restricted the applicability of exemptions to a registered person. As per the said amendment, while any residential dwelling used as residence by a non-registered person is exempted from levy of GST, the said service received by a registered person is chargeable under GST. 2.4 The Applicant has submitted that Notification No. 05/2022- Central Tax (Rate) dated 13.07.2022, brought an amendment to Notification No. 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person. In both the cases, the houses taken on rent for guest house purpose are located in residential area. 4.2 The Applicant has drawn attention to the Notification No. 05/2022- Central Tax (Rate) dated 13.07.2022 which brought an amendment to Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017 by inserting a serial number 5AA. The Applicant is of the view that renting of residential dwelling to a registered person whether used for residential or for any other purpose will fall under Reverse Charge Mechanism (RCM). But the Applicant in its submission has also contended that the term Residential Dwelling is not defined anywhere in GST Act or in the earlier service tax regime. However, as referred by the Applicant, Central Board of Indirect Taxes and Customs in its education guide dated 20.06.2012 has explained the phrase residential dwelling in clause 4.13.1 by interpreting the term in normal trade parlance as any residential accommodation, but does not include hotel, motel, inn, guest house, camp - site, lodge, houseboat, or like places meant for temporary stay. As the term guest house is not covered within the ambit of residential dwelling as provided in educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below. SN Property Used for Recipient Earlier Now 1 Residential Residence Unregistered Exempt Exempt 2 -do- -do- Registered Exempt Taxable under Reverse Charge 3 Residential Commercial Registered Taxable under Forward Charge Taxable under Reverse Charge 4 --do-- --do-- Unregistered Taxable under Forward Charge Taxable under Forward Charge 5 Commercial Commercial Any person Taxable under Forward Charge Taxable under Forward Charge 4.7 Thus, a residential property given on rent to a registered person whether f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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