In the instant case, the property under question is not a home or residence being used by a family or group of a members maintaining a regular house hold, but used for commercial purposes of accommodating students in bulk numbers. Thus it is classifiable as “Rental or leasing services involving own or leased non-residential property” under Service Code 997212 and taxable at the rate of 18 percent.
Rate of tax (service)— In the instant case, the applicant is a property owner having multiple properties leased to various tenants and registered as a service provider under GST.
The applicant strongly believes that he is not liable to pay Goods and Services Tax on leasing or renting of these hostel rooms of West Block which are essentially' 170 individual dwelling units which are let out en bloc exclusively for residential purpose to a commercial entity, and services by way of renting of dwelling units for residence is exempted under SI No. 12 of Exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017.
Questions raised for advance ruling is as follows—
1. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.14 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
2. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.12 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
1. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.14 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
2. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.12 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
The applicant is rather renting his immovable property consisting of 170 hostel rooms with attached bathrooms to the lessee for the purpose of commercial activity, who in turn sub leases it to Narayana Educational Society for the purpose of accommodating students.
In the instant case, the property under question is not a home or residence being used by a family or group of a members maintaining a regular house hold, but used for commercial purposes of accommodating students in bulk numbers. A temporary stay of the students will not merely qualify the purpose “for use as residence” and hence it is not qualified to be listed under heading 9963 or 9972.
Held that— The activity under question is non residential property rented out for commercial activity and supply of such services, in the facts and circumstances of the case, 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.
In the instant case, the property under question is not a home or residence being used by a family or group of a members maintaining a regular house hold, but used for commercial purposes of accommodating students in bulk numbers. Thus it is classifiable as “Rental or leasing services involving own or leased non-residential property” under Service Code 997212 and taxable at the rate of 18 percent.
Rate of tax (service)— In the instant case, the applicant is a property owner having multiple properties leased to various tenants and registered as a service provider under GST.
The applicant strongly believes that he is not liable to pay Goods and Services Tax on leasing or renting of these hostel rooms of West Block which are essentially' 170 individual dwelling units which are let out en bloc exclusively for residential purpose to a commercial entity, and services by way of renting of dwelling units for residence is exempted under SI No. 12 of Exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017.
Questions raised for advance ruling is as follows—
1. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.14 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
2. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.12 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
1. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.14 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
2. Whether amount received for leasing residential hostel rooms is exempt under Sl.No.12 (Heading 9963) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended upto 25.01.2018?
The applicant is rather renting his immovable property consisting of 170 hostel rooms with attached bathrooms to the lessee for the purpose of commercial activity, who in turn sub leases it to Narayana Educational Society for the purpose of accommodating students.
In the instant case, the property under question is not a home or residence being used by a family or group of a members maintaining a regular house hold, but used for commercial purposes of accommodating students in bulk numbers. A temporary stay of the students will not merely qualify the purpose “for use as residence” and hence it is not qualified to be listed under heading 9963 or 9972.
Held that— The activity under question is non residential property rented out for commercial activity and supply of such services, in the facts and circumstances of the case, 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.