9911796707
TMI Blog2023 (12) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... The said supply of service i.e. renting for commercial use is covered under 997212 and taxable @ 18% and the Applicant i.e. lessor is supposed to pay GST as mentioned above on forward charge basis. The lessee is not required to pay GST under RCM basis in term of Notification No. 05/2022-Central Tax (Rate) dated 18.07.2022. Thus, No the demised premises will not be covered in the definition of residential dwelling in term of Notification No. 05/2022-Central Tax (Rate) dated 13/07/2022 as it being used for commercial use - The important factors to be included in the definition of Residential Dwelling is the purpose for which the dwelling is put to use and the length of stay intended by the users. - UMESH KUMAR GARG AND MAHESH KUMAR GOWLA, MEMBER Present for the Applicant : C.A. Deepak Jain Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of providing comprehensive, independent fund accounting, reporting, and analytics solutions to fund administrators providing administration services to hedge fund industry. The Lessors are the absolute owners of the premises. The Lessor(s) and the Lessee have agreed to lease the Demised Premises on terms and conditions as specified attached Agreement. As per terms of the Lease agreement, in consideration of grant of lease to use and possess the aforesaid property, the lessee is required to pay to the applicant a monthly rent of Rs. 99,125/- (Total of Rs. 3,96,500/-.to the Lessors). Further, as per the terms of the lease agreement, the lessee has the right to sub-lease the aforesaid property during the lease term to any third party with prior intimation to the applicant for the purpose of business of lessee. B. Land use of property is residential. Lease deed issued by Jaipur development Authority(JDA), Jaipur in the respect of the Demised premised is Residential. C. As per Lease Agreement the Demised Premises shall be used solely for commercial purposes by the Lessee i.e. for establishing the branch/office of the Lessee. Construction of property is done for use as commerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial use (SAC Code - 997212) was taxable @ 18%. However, the taxability renting of residential property under GST has changed from of 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 on 28th to 29th June 2022 by partially removing the exemption and including the same under RCM services when provided to a registered person. Two notification were issued in this regard one is notification No. 04/2022-Central Tax (Rate) dated the 13th July, 2022 and second is notification No. 05/2022-Central Tax (Rate) dated the 13th July, 2022. Commercial property is still taxable as forward charge mechanism. Taxability on Renting of residential dwellings: Before 18-07-2022 From 18-07-2022 Exemption for Renting of Residential Dwellings Services by way of renting of residential dwelling for use as a Residence Services by way of renting of residential dwelling for use as a residence except where the residential dwelling is rented to a registered person. B. Inclusion in list of services under Reverse Charge Mechanism: - Following new Entry for Reverse Charge Tax by notification No. 05/2022-Central Tax (Rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, 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. G. Further, the applicant has relied in case of Collins (AP) V. Uratemp Ventures Limited {2012} 24 taxmann.com 134 (ECJ) held that Dwelling means a place where one lives, regarding and treating it as home. It is the place where he lives and to which he returns for sleep and which forms the Centre of his existence. Dwelling may be a house or part of a house and even a single room as a part of a house, may be a dwelling. However, the use a person makes of it when living there depends on his mode of life. Such a place does not cease to be dwelling merely because one takes all or some of one's meals out; or brings take away food in to the exclusion of home cooking: or at times prepares some food for consumption on heating devices. From the above interpretation of the court, it can be concluded that, any premises which can be used as residence for stay, can be termed as residential dwelling and which may be for long term. H. From the above, one can gauge that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the RGST Act. We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral and written submissions made at the time of Personal Hearing. We have also considered the issues involved on which Advance Ruling is sought by the applicant and relevant facts. We would like to discuss the submission made by applicant and will take up the above questions for discussion one by one. 2) The questions of Law raised by the Applicant are as under- 3. Whether the Demised premises will be covered in definition of residential dwelling for the purpose of notification No. 05/2022-Central Tax (Rate) dated 13/07/2022? 4. Out of following which are factors important to include in definition of residential dwelling? 9. Land use of property by local authorities; or 10. Layout of the property, its structure, whether it is designed for usage as a residential unit or a commercial unit; or 11. The purpose for which the dwelling is put to use; or 12. How is the plan of the property sanctioned by the local author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilt as a residential dwelling nor to be used for residence by the tenant of the building (lessee) but only to be used for furtherance of business of the lessee i.e. running hostel accommodation for students, executives etc. The AAR (Andhra Pradesh) in the case of M/s Lakshmi Tulasi Quality Fuels dated 05.05.2020 have held that the lessor has rented out their dwelling for commercial activity and supply of such services in the facts and circumstances of the case are classifiable as Renting 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. In view of the foregoing, we rule as follows: - RULING (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Rajasthan Goods and Services Tax Act, 2017) Q. 1 Whether the Demised premised will covered in definition of residential dwelling for the purpose of notification No. 05/2022-Central Tax (Rate) dated 13/07/2022? Ans-1. No the demised premises will not be covered in the definition of residential dwelling in term of Notification No. 05/2022-Central Tax (Rate) dated 13/07/2022 as it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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