TaxTMI 
TaxTMI 
2020 (4) TMI 692
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....Rules, 2017 and Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules 2017 & KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The applicant states that he is a proprietary concern registered under the provisions of the Goods and Services Act, 2017. The applicant states that engaged in the business of providing affordable residential accommodation to students on a long term basis (starting from 3 to 11 months). 3. The applicant has sought advance ruling in respect of the following questions: 1. Whether exemption prescribed under entry number 13 of notification no. 9/2017- integrated tax (rate) dated. 28^th June, 2017 can be sought and the lessors (h....
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....ated Tax (Rate) dated 28thJune, 2017 in which certain exemptions have been prescribed for specified activities. Entry 13 of such Notification provides that: "Services by way of renting of residential dwelling for use as residence" are exempt from GST. e. Further M/s. D TweIve Spaces Pvt. Ltd. Has entered into sub lease agreement students for providing residential accommodations with living amenities, security, entertainment facilities for a long stay for a period varying from 3 months to Il months. Thereby, D TweIve has concluded that the rental accommodation services provided by D Twelve to the students will not attract GST. Consequently, there would be no GST obligation on D TweIve in case of lease arrangement with their....
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....ces supplied by a person as holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; h. services provided by a race club by way of totalizator or a license to bookmaker in such club; i. any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities." c. The applicant states that Section 7 of the CGST Act defines the scope of supply. The expression "supply" include all forms of supply such as lease, rental made or agreed to be made for a consideration by a person in the course or furtherance of business. Section 7 (1-A) guides in determining whether a supply shall....
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....of the lease deed entered between the lessors, of which the applicant is one of the them and the D twelve Spaces Private Limited (hereinafter called as "Company") shows that the lessors (totally five in number) have collectively leased out their premises to the Company by way of a single agreement. Each of the lessor has owns a part of the property and they have pooled up their properties and then leased it to the Company. Further, the agreement is a single agreement and the description of the leased premises also shows that the property consists of "42 room along with the 2400 sq.ft of terrace area" on the execution date. The terms and conditions for the transaction is common and the agreement is for the entire property. Furthe....
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....immovable property without transfer of the ownership of the immovable property. For this transaction, they are collecting an amount which is the consideration for such transfer of right to use the property. This is in the course or furtherance of business and hence as per Section 7 (1) of the CGST Act, 2017, the transaction between the lessor and the Company would constitute a "supply". Further, this would be a supply of service as per section 7 (1-A) of the CGST Act, 2017 read with the entry no. 2(b) of the Second Schedule to the CGST Act, 2017, which reads as under: "(b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply....
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....for use as residence". The contract of the applicant group with the Company is verified and found that what is given is an immovable property consisting of only rooms with attache toilets as per the Layout of the leased premises annexed to the Lease agreement and does not fit into the meaning of a dwelling which means a house. They are like hotel rooms and the entire leased premises has 42 rooms, which can by no imagination be termed as a residential dwelling. Even if the same is given for residential purposes, the services provided is not for use as residence by the lessee. Services by a hotel, inn, guest house, club site or campsite, by whatever name called, or other commercial places for residential or lodging purposes are covered by dif....