GST on commercial property leasing treated as taxable supply, with rental income liable at the applicable service rate.

Leasing immovable property for business or commerce was treated as a taxable supply under GST, because letting out a building for commercial use falls within Schedule II. The rental income from leasing property to a corporate recipient was accordingly brought under the service classification for real estate services, with the applicable rate traced to Notification No. 11/2017-Central Tax (Rate). GST was held payable on the rental income at 18% from 01.07.2017. Other questions were not answered because they were considered outside the maintainable scope of the ruling or insufficiently specified.

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Issues: Whether GST was payable on rental income received from leasing the immovable property to Karnataka Food & Civil Supplies Corporation Limited.

Analysis: The rental activity was treated as a supply because leasing or letting out of a building for business or commerce falls within the scope of supply under Schedule II. The property was leased to a corporate recipient, and the applicable rate was traced to the service classification for real estate services under Notification No. 11/2017-Central Tax (Rate). The other questions were not answered as they were held to be outside the applicant's maintainable scope or not sufficiently specified for ruling.

Conclusion: GST was held payable on the rental income at 18% from 01.07.2017, in favour of Revenue.

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