Hostel leases treated as residential dwelling under Entry 13 of Notification 9/2017, GST exemption applies prospectively only

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....SC held that premises leased by Assessee to a company operating hostels for students and working professionals constitute a "residential dwelling" under Entry 13 of Notification No. 9/2017-Integrated Tax (Rate). The ultimate use remains residential, and mere commercial terms of lease do not alter its character. GST at 18% on such lease would defeat the legislative intent of exempting residential use. SC further held that the 2022 amendment withdrawing exemption where premises are rented to a registered person cannot be applied retrospectively. The Explanation to the Notification clarifies that exemption continues where used for own residence, even if rent is paid by a registered person. Appeals by Revenue were dismissed.....