GST not applicable on lease rent charged from company for use of property as residential staff quarters: AAR

The Applicant is the owner of properties containing 22 Nos. of residential apartments. The Applicant fixes rentals/ license fee for residential apartments at Rs.145/-per sq.ft. There is no dispute that SI. No. 12 of the Notification No. 12/2017-CT (Rate) and ST(Rate} is applicable for renting out/ giving license the property to individual owner for their residential use.

The Applicant proposes to let out on Leave and License Basis the said premises to LIC for residential purpose of their staff members and the Ruling is sought on the applicability of Exemption notification No. 12/2017-CT (Rate) on the said transaction.

Advance Ruling:

Whether Applicant is eligible for the exemption from payment of GST on the monthly license fee to be received by them on the proposed letting out on Leave and License Basis of their residential building at Flat No. 19, admeasuring 1305 sq. ft. (carpet) area, on the First floor, Flat No.21, admeasuring 1336 sq.ft. on the First Floor, and Terrace T2 Flat admeasuring 1323 sq.ft. on the 6th Floor, of Kasturi Building, situate at Jamshedji Tata Road, Mumbai 400020, to M/s. Life Insurance Corporation of India for residential purpose of their staff, as per SI. No. 12 of the Notification No.12/2017-CT(Rate), dated 28-6-2017 and corresponding SI. No. 12 of notification No. 12/2017.

Answer is Affirmative