Hotel accomodation vs residential dwellings

[Nikhil Virkar]

If residential hotel booked thru leave and license agreement for 2 years for 10 rooms to serve purpose as Bachlor's accomodation by registered person. Can this be treated as renting of residential dwellings and liable to tax under RCM? whether ITC is allowed if required to be paid under RCM?

AI Summary

Booking Hotel as Bachelor's Accommodation for Two Years Not Subject to GST Under RCM; Forward Charge Applies A query was raised regarding whether booking a residential hotel for two years as bachelor's accommodation through a leave and license agreement constitutes renting of residential dwellings, thus attracting Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM). Amit Agrawal clarified that hotel accommodation and residential dwellings are distinct under GST law, and GST is not payable by the registered recipient under RCM in this case. However, the hotel must charge GST under forward charge if registered or liable to be registered. Kasturi Sethi agreed, emphasizing that hotel accommodation is not considered residential, negating the RCM applicability.