GST on Guest House Given to employee on Rent

[AdvMurari Kumar]

Dear Expert,

Please advice if GST is applicable on Guest House given to employee on rent for the period of one year. rent will be paid by employee.

AI Summary

GST Applicability on Company-Rented Guest Houses: Key Factors Include Property Nature and Employee Agreement Details. A discussion on the applicability of GST on a guest house rented by a company to an employee concluded that GST is generally applicable if the guest house is considered part of the company's commercial activity. However, if the guest house qualifies as a 'residential dwelling' and is rented to an unregistered person (the employee) for personal use, it may be exempt from GST. The key determining factors include the nature of the property and the contractual agreement between the company and the employee. Various experts debated the implications of recent circulars and legal definitions on this issue.