TaxTMI 
TaxTMI 
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?
Residential Quarters to Employees
05 Mar 2021 
6 Replies 
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Renting of residential dwelling exempt under GST when provided as bona fide residence; guest house use can affect exemption status.
Renting of a dwelling used by workers or employees as a residence is exempt under the relevant GST notification; this exemption applies to employer provided residential quarters when occupied as residences and not as guest houses. If quarters are used as guest houses, the residential dwelling exemption does not apply and treatment follows the separate notification entry for such accommodation, which conditions exemption on rents remaining below the specified threshold. (AI Summary)
Renting of a dwelling used by workers or employees as a residence is exempt under the relevant GST notification; this exemption applies to employer provided residential quarters when occupied as residences and not as guest houses. If quarters are used as guest houses, the residential dwelling exemption does not apply and treatment follows the separate notification entry for such accommodation, which conditions exemption on rents remaining below the specified threshold. (AI Summary)