GST Implication on Lease Rentals by Hotel / Convention Owners to the organisers of Exhibition/Sales Organisers- Certain Instructions to filed level officers

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....g out their premises to various organisers for hosting exhibitions, trade fairs, and sales events. This circular is intended to clarify the GST implications on such transactions. The transaction involves: • Hotel/Convention Owners (lessor) leasing/renting out space to • Exhibition/Sales Organisers (lessee) for a limited duration for conducting business events, such as exhibitions, trade fairs, sales showcases, etc. • This transaction is not a supply of service by the hotel as accommodation or banquet service, but as "leasing of immovable property for business or commerce" under GST. Applicable GST Provisions: For the Hotel/Convention Owners (lessor) leasing/renting out the space a) Class....

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.... • Rental income must be disclosed in GSTR-1 under the appropriate HSN/SAC code. f) Exemption Clarification • Exemption under Entry 5 of Notification No. 12/2017 - Central Tax (Rate) is not applicable here. This entry covers renting of precincts of religious places meant for the general public and does not apply to commercial exhibitions. Action Points for Officers • Scrutinize returns (GSTR-1 and GSTR-3B) of hotels/convention centres regularly to identify such lease income. • Ensure correct classification and tax rate application. • Verify whether GST invoices are raised properly to the organisers. • Issue notices in case of tax evasion or misclassificatio....

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....le GST (based on nature of goods/services). f) Filing of Returns CTPs are required to file the following returns: Return Form No. Frequency Notes Outward Supplies GSTR-1 Monthly Details of sales Summary Return GSTR-3B Monthly Payment of tax Final Return GSTR-10 Once Upon expiry of registration g) Input Tax Credit (ITC) • CTPs can claim ITC on eligible inward supplies, including: • Rent paid to the hotel/convention center • Goods/services used during the exhibition • However, ITC is subject to normal conditions under Section 16, including possession of a tax invoice, actual receipt of goods/services, etc. h)....