GST applicability on leased out property for residential purpose

[TEAM GST]

Dear Experts, seeks your valuable insights on the query set out below.

• Mr.A and Mrs.A are co-owners of a property intended to be leased out to Mr.C who is a consultant of BP ventures.
• Now, Mr.A is registered under GST as proprietor of another business, whereas Mrs A is not registered under GST.
• BP ventures is registered under GST.

Now,the Co-owners intent to lease out the property to BP Ventures for residential purpose of Mr.C and his family members.

Should GST be applicable under RCM basis on BP ventures in this scenario, if 'yes', can BP Ventures avail ITC on the same?

Further, would Mr.A's GST registration have any impact on the applicability of GST?

Dear Experts, seeks your valuable insights on the query set out below.

• Mr.A and Mrs.A are co-owners of a property intended to be leased out to Mr.C who is a consultant of BP ventures.
• Now, Mr.A is registered under GST as proprietor of another business, whereas Mrs A is not registered under GST.
• BP ventures is registered under GST.

Now,the Co-owners intent to lease out the property to BP Ventures for residential purpose of Mr.C and his family members.

Should GST be applicable under RCM basis on BP ventures in this scenario, if 'yes', can BP Ventures avail ITC on the same?

Further, would Mr.A's GST registration have any impact on the applicability of GST?

AI Summary

Residential renting to registered businesses attracts reverse charge, while input tax credit depends on documented business necessity.
Residential property leased to a GST-registered business entity as contractual lessee is subject to reverse charge, notwithstanding residential occupation by its consultant and family. The landlords' GST registration status does not change this treatment. Input tax credit on reverse-charge tax is uncertain where the accommodation is used personally, unless a documented business necessity under the consultancy arrangement establishes a sufficient business nexus. A direct lease to the consultant personally for family residence may ordinarily remain exempt if the business entity is not the actual recipient and the contractual and payment arrangements support that position.