Services by way of renting of residential dwelling for use as residence.

[S.C. WADHWA]

Services by way of renting of residential dwelling for use as residence.

Please clarify:

Whether this service should be reported as exempted supply or nil rated supply in GSTR 3B
 

[Alkesh Jani]

Sir, In my point of view , it shall be treated as "Nil rated supply".

Our experts may correct me if mistaken.

Thanks

[CSSANJAY MALHOTRA]

Renting of property is taxable activity but exemption has been given if the same is used for Residential purposes. Hence the service falls under exempted supply.

Nil rated are those which are absolutely and unconditionally chargeable to nil rate, mostly in case of goods. exempt includes chargeable to anil rate also.

This is my view.

[YAGAY andSUN]

Point No 12 of the Notification No. 12/2017- Central Tax (Rate)

Heading 9963 or Heading 9972

Services by way of renting of residential dwelling for use as residence.

Nil, Nil.

[Alkesh Jani]

Sir,

Sh. Sanjay ji, Thanks for your valuable suggestion. However, I was and I am, is under impression that if Notification issued under Section11 (1) of CGST Act, 2017, where whole or any part of tax leviable may be treated as “Nil” as per Notification rates and while Notification issued under Section11(2) where exempt from payment of tax, may be treated as “exempted”.

Your kind guidance is the matter is highly solicited.

With Regards,

[KASTURI SETHI]

Section 2(47) of CGST Act, 2017 makes the position clear as already replied by Sh.Sanjay Malhotra, Sir.

Section 11 comes into play when tariff rate is not nil.

Section 11 stands for exemption by virtue of Notification in contrast to "Tariff Rate -NIL".

Section 11(1) grants general exemption and Section 11 (2) grants exemption under exceptional nature.

 

[KASTURI SETHI]

Sh.Sanjay Malhotra Ji,. Sir,. In your reply above, you have mentioned the words, "This is my view". In my view, your words, "this is my view" are redundant.

AI Summary

Exempt supply: renting of residential dwellings should be reported as exempt in GSTR 3B, not nil rated. Renting of a residential dwelling for use as residence is treated as an exempted supply for GST reporting rather than a nil rated tariff entry. The discussion distinguishes between nil tariff entries in the rate schedule and exemptions granted under the CGST exemption provisions, noting that the former is a tariff treatment while the latter is an exemption mechanism that dictates reporting in GSTR 3B.