LDR GST

The irony is quite recently in the month of May 2022,  The Authority for Advance Ruling, Maharashtra in case of  M/S. KASTURI & SONS LTD, AAR held that GST applicability is not decided by the nature of the property but by the purpose for which it is used. Thus, GST exemption is allowed to applicant. You can read our earlier blog by clicking this hyperlink  further.  The ruling given by the West Bengal Authority for Advance Ruling, Goods and Services Tax, in the case of IN RE: M/S. BORBHETA ESTATE PVT. LTD was referred in the above ruling 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. That said effective 18th July 2022, the following amendments were made to effect GST on rental income derived from residential u...

 Residential apartments let out to commercial organisation for residential use of their staff does not make it commercial lease M/s. Kasturi & Sons, (The Applicant) had proposed to let out some of its residential flats, located in a posh South Mumbai area, to Life Insurance Corporation of India (LIC) approached the AAR on the taxability under GST. It contended that the flats that are going to be let out are residential apartments and they are going to be used for residential purposes only. Merely because these flats will be taken by LIC does not change the end usage to ‘commercial. The applicant charges license fee for residential rate. The question is whether this activity is liable for. GST ? The Applicant claims that just because it was taken by a commercial organiastion for the residential usage of their staff members, the same cannot be treated as usage for commercial purpose. AAR, Maharastra, dismissed the arguments of GST officer that tenant is a commercial organisation ...