GST on renting Residential Property

[Rajendra Prasad]

Sir, ABC Pvt. Ltd. has leased out it's residential quarters to XYZ firm. XYZ firm is using those residential quarters for residential status of their staff. Is GST leviable on residential rent received from Commercial Concern. Please clarify.

[SHARAD ANADA]

Refer Notification 12/2017 CT ( Rate) entry No.12

Heading 9963 or

Heading 9972

Services by way of renting of residential dwelling for use as residence. Rate of the tax is Nil. Conditions if any Nil

AI Summary

GST on residential renting: Nil rate applies where a dwelling is leased for use as residence. Renting of a residential dwelling for use as residence is treated as a Nil rated supply under the applicable GST rate notification; the Nil rate applies where the premises are used as a residence and no additional conditions were indicated, so leasing residential quarters to a commercial firm for staff residence does not alter that classification.