The First Lease agreement between the owner and the applicant, at the most can be termed as property management services falling under service code 997221, hence not qualifies under service code 997211 for exemption.
However, the second Lease agreement (Sub-Lease) which is between the applicant and the actual user of the property which is for residential purpose falls under exemption entry 12 of Notification No. 12/2017- Central Tax (Rate).
Authority for Advance Ruling — GST on Amount Charged for Sub Leasing out Residential Dwelling Unit – The applicant engaged in the Business of taking Residential Dwelling unit on Lease and further Sub Leasing the Residential Dwelling unit to the Various Individual / Corporates for Residential Purposes along with various amenities such as Housekeeping. The Applicant Charges for Sub Leasing the Residential unit and also for Amenities which the applicant provides separately from own account to the tenant and the applicant is Charging GST only on amount charged by them against the Amenities provided to Sub-Lessee. The Applicant is not charging GST on Amount Charged for Sub Leasing out Residential Dwelling Unit. The applicant sought an advance ruling as to whether the Residential Dwelling Unit taken on Lease from Various Individuals/Owners for Sub Leasing the same Residential Dwelling unit to Corporates as well as Individuals for Residential Purposes along with various amenities such as Furniture, Appliance, Cleaning, Security, Pest Control, AC Service etc. is Exempt Supply as per the Entry No. 12 of Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017.
Held that:- The Hon’ble Authority ruled that the First Lease agreement between the owner and the applicant, at the most can be termed as property management services falling under service code 997221, hence not covered in entry 12 of Notification No. 12/2017- CT (Rate) dated 28th June 2017 and it is the second Lease agreement (Sub-Lease) which is between the applicant and the actual user of the property which is for residential purpose. This agreement, qualifies under service code 997211(Rental or leasing services involving own or leased residential property) and falls under the said entry 12 of the notification.
The First Lease agreement between the owner and the applicant, at the most can be termed as property management services falling under service code 997221, hence not qualifies under service code 997211 for exemption.
However, the second Lease agreement (Sub-Lease) which is between the applicant and the actual user of the property which is for residential purpose falls under exemption entry 12 of Notification No. 12/2017- Central Tax (Rate).
Authority for Advance Ruling — GST on Amount Charged for Sub Leasing out Residential Dwelling Unit – The applicant engaged in the Business of taking Residential Dwelling unit on Lease and further Sub Leasing the Residential Dwelling unit to the Various Individual / Corporates for Residential Purposes along with various amenities such as Housekeeping. The Applicant Charges for Sub Leasing the Residential unit and also for Amenities which the applicant provides separately from own account to the tenant and the applicant is Charging GST only on amount charged by them against the Amenities provided to Sub-Lessee. The Applicant is not charging GST on Amount Charged for Sub Leasing out Residential Dwelling Unit. The applicant sought an advance ruling as to whether the Residential Dwelling Unit taken on Lease from Various Individuals/Owners for Sub Leasing the same Residential Dwelling unit to Corporates as well as Individuals for Residential Purposes along with various amenities such as Furniture, Appliance, Cleaning, Security, Pest Control, AC Service etc. is Exempt Supply as per the Entry No. 12 of Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017.
Held that:- The Hon’ble Authority ruled that the First Lease agreement between the owner and the applicant, at the most can be termed as property management services falling under service code 997221, hence not covered in entry 12 of Notification No. 12/2017- CT (Rate) dated 28th June 2017 and it is the second Lease agreement (Sub-Lease) which is between the applicant and the actual user of the property which is for residential purpose. This agreement, qualifies under service code 997211(Rental or leasing services involving own or leased residential property) and falls under the said entry 12 of the notification.