TaxTMI 
TaxTMI 
2023 (12) TMI 150
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....N (hereinafter referred to as "applicant") is an un-registered applicant engaged in providing Professional service of Chartered Accountant and currently Senior Partner in B D Jain & Co. Chartered Accountants. Applicant is owner (along with family members Shri Padam Chand Jain, Smt. Manju Devi Jain and Smt. Samta Jain hereinafter collectively referred to as "Lessor(s)") of property situated J-10, Lal Kothi, Sahakar Marg, Jaipur, Rajasthan-302018 (hereinafter referred to as the Demised Premises)is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a), (b) & (e)given as under: (a) Classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (e) determination of the liability to pay tax on any goods or services or both; A. SUBMISSION OF THE APPLICANT:(in brief) A. Deepak Jain (hereinafter referred to as the "Applicant") is engaged in providing Professional service of Chartered Accountant and currently Senior Partner in B D Jain & Co. Chartered Accountants. Applicant is currently unregistered under GST Act 2017. Applicant is owner (along with family members Sh....
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.... ups including but not limited to lifts, internal partitions, walls, electrical, sanitary and other fixtures and fittings, counters, vaults, lockers, cabinets, doors, gates, air-conditioners, provision of drinking water equipment's, false ceiling (grid type), flooring in the Demised Premises. G. DESCRIPTION OF THE DEMISED PREMISES: - Address: J-10, J BLOCK, LAL KOTHI SCHEME, SAHAKAR MARG, JAIPUR, RAJASTHAN -302015 1. Complete Basement:1600 SQFT with cafeteria furnishing 2. First Floor: 1100 SQFT (Super Built up Area) 30 Workstations 3. Second Floor: 2600 SQFT (Super Built up Area) 70 Workstations 4. Third Floor: 2600 SQFT (Super Built up Area) 70 Workstations 5. Ground Floor: Parking as per agreed proportion 6. Tank for Water Storage H. RENT INCLUSIVE INSTALLATIONS AND SERVICES INSTALLATIONS AND SERVICES IN THE SCOPE OF THE LESSOR 1. Workstations with Network wiring& Electrical Power points as per approved Layout & Design by Lessee 2. Lift 3. Chairs as per approved Design by Lessee 4. AC/VRV 5. Lights as per approved make and Lux level approved by Lessee 6. Fa....
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....d with effect from 18th July 2022 in notification No. 13/2017-Central Tax (Rate), dated the 28th June, 2017:- (1) (2) (3) (4) SI. No. Category of Supply of Service Supplier of service Recipient of Service "5AA Service by way of renting of residential dwelling to a registered person. Any person Any registered person."; C. The term 'residential dwelling' is not defined in Central Goods and Services Tax Act, 2017. So, the dictionary meaning of the same is referred to, which is as follows: As per Black's Law Dictionary: 'Residential dwelling means living in a certain place permanently or for a considerable length of time' As per Merriam Webster dictionary: 'A shelter (as a house) in which people live' As per the Oxford dictionary: 'A house or apartment or other places of residence or a place to live in or building or other places to live in'. D. CBIC Education Guide dt 20/06/2012 provides clarification in the context of service tax laws, wherein it is mentioned that in the absence of a definition of the terms 'residential dwelling' one has to interpret the same i....
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.... for stay, can be termed as residential dwelling and which may be for long term. H. From the above, one can gauge that the structure of dwelling (i.e., the way it is designed - the layout of the dwelling) and the intent of its use are of paramount importance to determine whether or not the premises is a residential dwelling. In case of renting of commercial premises, there is no exemption under GST and irrespective of the tenant's status i.e., registered or unregistered, the said transaction is taxable in the hands of landlord under forward charge. However, if one concludes the property to be a commercial premises, then the taxability is under forward charge in the hands of the lessor. I. Applicant's view is that the Demised Premises is not residential dwelling and taxis to be paid by the Applicant under forward charge. Recipient is not required to pay Reverse Charge Tax and Reverse Charge Tax is not applicable in present case whether supplier is GST registered or not. C. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT: - 1. Whether the Demised premised will be covered in definition of residential dwelling for the purpose of notification No. 05/2022-....
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....rty by local authorities; or 10. Layout of the property, its structure, whether it is designed for usage as a residential unit or a commercial unit; or 11. The purpose for which the dwelling is put to use; or 12. How is the plan of the property sanctioned by the local authorities; or 13. The intention of the developer / owner of the property; or 14. The length of stay intended by the users; or 15. Electricity Bill; and 16. Municipal Tax We hold that the definition of Residential dwelling is not mentioned in GST Law. However as per Black's Law Dictionary: 'Residential dwelling means living in a certain place permanently or for a considerable length of time' As per Merriam Webster dictionary: 'A shelter (as a house) in which people live' As per the Oxford dictionary: 'A house or apartment or other places of residence or a place to live in or building or other places to live in'. So the main thing to be decided is to find out the use of property rented out by the Applicant and accordingly the taxability of GST shall be determined. Point 4 (a) of the Lease Agre....