Court :
AAR, Rajasthan
Brief :
The AAR, Rajasthan in the case of In Re: M/s. Deepak Jain [Advance Ruling No. RAJ/AAR/2023-24/14 dated November 29, 2023] held that the Lessor is liable to pay GST on forward charge basis when the residential property is rented out for commercial purpose.
Citation :
Advance Ruling No. RAJ/AAR/2023-24/14 dated November 29, 2023
The AAR, Rajasthan in the case of In Re: M/s. Deepak Jain [Advance Ruling No. RAJ/AAR/2023-24/14 dated November 29, 2023] held that the Lessor is liable to pay GST on forward charge basis when the residential property is rented out for commercial purpose.
M/s. Deepak Jain ("the Applicant") is a practicing Chartered Accountant. However, the Applicant is not a registered person under GST Act. The Applicant, along with other family members is the owner of the premises situated in Jaipur ("the Premises"). The Applicant entered into a lease agreement with Back Office IT Solution Pvt. Ltd. ("the Lessee") and is registered under the GST Act. As per the lease deed issued by the Jaipur Development Authority ("the Authority"), the land use of the premises is residential in nature. However, as per the lease agreement, the Premises shall be used for commercial purposes only.
Whether the Applicant being Lessor is liable to pay GST on forward charge basis when the residential property is rented out for commercial purpose?
The AAR, Rajasthan in Advance Ruling No. RAJ/AAR/2023-24/14 heldas under:
Judgement posted by
Service
FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more
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