No GST Exemption on Renting of Residential Dwelling to Working Women/ Students

The Authority for Advance Ruling (AAR Karnataka) in the matter of Ms. DEEKSHA SANJAY has ruled out that No GST Exemption on Renting of Residential Dwelling to Working Women/ Students.

The applicant submitted that they are a proprietary concern, registered under the GST Act, engaged in the business of renting of residential dwelling, situated at # 14, 2nd Cross, Thimmappa Reddy Layout, Bengaluru-560076, being the owner of the said property and pays property tax to the BBMP; the said building is suitable for residential purposes, layout of the property, its structure, design and the plan of the property, sanctioned by the local authorities, is for usage as residential building.

The Question and Ruling are as follows:

a. Whether renting of residential dwelling to the students and working women for residential purpose along with amenities and facilities such as food, furniture, appliance, cleaning, security, pest control etc., on monthly rental basis, is exempt under entry No.12 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 or not?

b. If applicant transaction is not exempt, then what is the GST rate?

c. If applicant transaction is taxable, whether applicant can claim ITC on input used for providing taxable service?

RULING

a) Renting of residential dwelling to the students and working women for residential purpose along with amenities and facilities such as food, furniture, appliance, cleaning, security, pest control etc., on monthly rental basis, as provided by applicant is not exempted under entry No.12 of Notification No.12/ 2017-Central Tax (Rate) dated 28.06.2017.

b) The impugned services of the applicant are covered under SAC 9963 and thus attract GST @ 12%, in terms of entry number 7(i) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, as amended.

c) The applicant can claim ITC on inputs used for providing the impugned taxable services subject to fulfilment of the conditions stipulated under Sections 16 and 17 of the CGST Act 2017 and the rules made thereunder.

For Official Ruling Download PDF Given Below: