Residential Quarters to Employees

[Ashish Diwedi]

We are a manufacturing unit since 1980 registered under GST. We have constructed residential quarters for our workers and employees for their residential use and convenience in the year 2000. We give the same against a nominal rent. Are we supposed to pay GST on the same as it is for residential purpose?

AI Summary

GST Exemption on Residential Quarters for Employees Confirmed; Guest House Use Requires Rent Below 1000 for Exemption. A manufacturing unit registered under GST since 1980 constructed residential quarters for its employees in 2000, providing them at a nominal rent of 1000 per month. The query raised was whether GST applies to this arrangement. Responses indicated that renting residential quarters for residential purposes is exempt from GST under Notification No. 12/17-CT(R) dated 28.9.17, as amended. However, if any quarters are used as guest houses, the rent must be below 1000 to remain exempt. Multiple contributors confirmed this exemption, referencing relevant notifications and rulings.