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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 ..... he OGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the SGST Act. 1.0 The Applicant has sought for an advance ruling in respect of the following question. Q. Whether Service Received by a registered person by way of renting of residential premises used as guest house of the registered person is subject to GST under Forward Charge Mechanism (FCM) or Reverse Charge Mechanism (RCM)? 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST 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 provision under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otel, 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the Applicant's interpretation of law and/or facts, as the case may be, in respect of the question asked. We find that the question before us essentially pertains to the applicability of a notification issued under the provisions of the GST Act, 2017. We, therefore observe that the issue before us is squarely covered under Section 97(2) of the CGST Act, 2017 and therefore we admit the application for consideration. 4.1 The Applicant has stated that it has got manufacturing unit at Therubali and at Choudwar and captive mines located at Sukinda, Odisha. The Applicant has further stated that it has taken on rent certain premises at New Delhi and Jajpur in Odisha for use as guest house. The guest houses are used to provide food and accommoda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge mechanism which is being paid by the Applicant. 4.3 We see that renting of an immovable property/residential dwelling is considered a supply of service under GST as per schedule II of the CGST Act 2017. Till 17th July 2022, services by way of renting of residential dwelling for use as residence was exempted, whereas services by way of renting for commercial use (SAC Code -997212) was taxable @ 18%. However, the dynamics of renting of residential property under GST has changed w.e.f 18th of July 2022. The decision to bring the renting of residential dwellings under the tax net was taken in the 47th GST Council Meeting held in June 2022 by partially removing the exemption and including the same under RCM services when provided to a regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial 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 for residential purpose or otherwise shall attract RCM provisions. At the outset it is pertinent to understand whether in this case, the property on rent is a residential property 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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