GST RCM not applicable on Residential Dwellings Leased for Commercial Use [Read AAR Order]

The Authority for Advance Ruling (AAR Rajasthan) in the matter of M/s DEEPAK JAIN has ruled out that GST RCM is not applicable on Residential Dwellings Leased for Commercial Use.

M/s DEEPAK JAIN (hereinafter referred to as “applicant”) is an unregistered applicant engaged in providing the Professional service of a Chartered Accountant and currently a Senior Partner in B D Jain and Co. Chartered Accountants. Applicant is the owner (along with family members Shri Padam Chand Jain, Smt. Manju Devi Jain and Smt. Samta Jain hereinafter collectively referred to as “Lessor(s)”) of property situated J-10, Lal Kothi, Sahakar Marg, Jaipur, Rajasthan-302018 (hereinafter referred to as the Demised Premises).

The Question and Ruling are as follows:

Q.1. Whether the Demised premised will covered in the definition of residential dwelling for the purpose of notification No.05/2022-CentralTax (Rate) dated 13/07 /2022?

Q.2. Out of the following which are factors important to include in the definition of residential dwelling?

RULING

1. No the demised premises will not be covered in the definition of residential dwelling in terms of Notification No.05/2022-CentralTax (Rate) dated 13/07 /2022 as it is being used for commercial use.

2. The important factors to be included in the definition of Residential Dwelling are the purpose for which the dwelling is put to use and the length of stay intended by the users.

For Official Ruling Download PDF Given Below: