Residential dwelling exemption covers hostel accommodation used for long-term residence by students and working professionals.

Leasing of residential premises used as hostel accommodation for students and working professionals falls within the exemption for renting of a residential dwelling for use as residence under Entry 13 of Notification No. 9/2017-Integrated Tax (Rate). The term "residential dwelling" is not statutorily defined and is to be understood in common parlance; on that basis, long-term accommodation used for sleeping, eating and residence qualifies. The notification does not require the lessee to personally occupy the premises as a residence, and commercial registration or trade licence particulars of the lessee are irrelevant to the exemption.

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Issues: Whether leasing of residential premises used as a hostel for students and working professionals falls within Entry 13 of Notification No. 9/2017-Integrated Tax (Rate), namely services by way of renting of residential dwelling for use as residence.

Analysis: Entry 13 grants exemption only to renting of a residential dwelling used as a residence, and exemption notifications are to be construed strictly with the burden on the claimant to show that the case falls within the exemption. The expression "residential dwelling" is not defined in the statute and must be understood in its common parlance sense. On that basis, residential accommodation used for long-term stay, including a hostel occupied by students and working professionals for sleeping, eating and residence, answers that description. The notification does not require that the lessee itself must occupy the premises personally as a residence. Trade licence particulars or commercial registration of the lessee were held to be irrelevant to the exemption issue.

Conclusion: The hostel accommodation is covered by Entry 13 and the exemption under the notification is available to the petitioner.

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