TaxTMI 
TaxTMI 
2022 (6) TMI 193
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.... Applicant is eligible for the exemption from payment of GST on the monthly license fee to be received by them on the proposed letting out on Leave and License Basis of their residential building at Flat No. 19, admeasuring 1305 sq. ft. (carpet) area, on the First floor, Flat No.21, admeasuring 1336 sq.ft. on the First Floor, and Terrace T2 Flat admeasuring 1323 sq.ft. on the 6th Floor, of Kasturi Building, situated at Jamshedji Tata Road, Mumbai 400020, to M/s. Life Insurance Corporation of India for residential purpose of their staff, as per SI. No. 12 of the Notification No.12/2017-CT(Rate), dated 28-6-2017 and corresponding S.No.12 of Notification No. 12/2017-ST(Rate) under Maharashtra Goods and Service Tax Act, 2017. At the outset, we....
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....sage for commercial purpose at Clause 4.1 of the proposed agreement itself. When the premises is given for Leave and License for specific purpose and there is a specific restriction from usage for commercial purpose, just because it was taken by Life Insurance Corporation of India for the residential usage of their staff members, the same cannot be treated as usage for commercial purpose. Serial No.12 of Notification No.12/2017-CT (Rate) and the corresponding Notification under MGST Act, 2017, is very clear wherein it gives exemption to the nature of the property and its usage and not by the status of recipient. In this case the property is residential, and renting is for residential purposes. 03. CONTENTION - AS PER THE CONCERNED OFFICER:....
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....l officer. 5.2 The Applicant M/s Kasturi & Sons, has submitted that they are the owners of properties containing 22 numbers of residential apartments and proposes to let out on Leave and License basis, the said premises to M/s. Life Insurance Corporation of India (LIC) for residential purpose of their staff members on fixed rentals / license fee. The said residential apartments leased to LIC are going to be used only for residential purpose as per specific restriction for usage for commercial purpose at Clause 4.1 of the proposed agreement and accordingly the subject question is asked by the applicant. 5.3 Under G5T Laws pure renting or leasing activity is a supply of services. To understand the subject issue we need to first find out und....
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....on given in Sr. No. 12 mentioned above is qua the supply of service and not qua the recipient of the supply. We therefore agree with the contention of the applicant that, Serial No.12 of Notification No.12/2017-CT (Rate) and the corresponding Notification under MGST Act, 2017, is very clear wherein it gives exemption to the nature of the property and its usage and not by the status of recipient. Further the applicant has also submitted a letter Ref: WZ/EST/SQ dated 10.11.2021 issued by Assistant Secretary/Estates), LIC of India, Western Zone, wherein details of allotments made to LIC employees in respect of flats in Kasturi Building, Mumbai taken on lease from the applicant have been provided. It is mentioned in the said allotment letter th....
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....ation No. 12/ 2017-CT (Rate), dated 28-06-2017 and corresponding Sr. No. 12 of Notification No.12/2017-ST (Rate) under MGST Act, 2017, is not applicable in this case. 5.9 The said submissions made by the jurisdictional officer defies all logic. He has not explained as to how allotment of residential quarters make an employee to sit late in office especially when there are fixed office hours. Further, the jurisdictional officer has also not given any proper reasoning to show that by making expenses towards leasing of residential quarters for its staff, LIC is making profits. The said officer has not given any logical and legal reasoning to show that the exemption given vide Sr. No. 12 of Notification No. 12/ 2017-CT (Rate), dated 28-06-2017....
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....t to individuals or a commercial entity. Held that the Applicant's service of renting/leasing out the dwelling units for residential purpose was, exempt under Si No. 12 of the Exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017, as amended from time to time and the Applicant, therefore, was not liable to pay tax on supply of such service. 5.10.2 The subject case is very similar to the case of leasing of property for residential use given to M/s Larsen & Toubro by M/s Borbheta Estate Pvt Ltd mentioned above and therefore the ratio of the above mentioned order is applicable in the subject case also. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under section 98 of the C....