TaxTMI 
TaxTMI 
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.
GST on Guest House Given to employee on Rent
16 Dec 2022 
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GST on rental of guest houses depends on whether the supply is a commercial rent or falls under residential dwelling exemption.
GST liability turns on whether the company charges rent-if rent is charged it is a commercial supply in the course of business and taxable; if no consideration is charged (a perquisite), no GST arises. The residential dwelling exemption may apply where the premises qualify as a residence and are let to an individual for personal use, including where the occupant is registered but uses it personally; factual characterisation of the guest house versus residential dwelling is decisive. (AI Summary)
GST liability turns on whether the company charges rent-if rent is charged it is a commercial supply in the course of business and taxable; if no consideration is charged (a perquisite), no GST arises. The residential dwelling exemption may apply where the premises qualify as a residence and are let to an individual for personal use, including where the occupant is registered but uses it personally; factual characterisation of the guest house versus residential dwelling is decisive. (AI Summary)