Case Details: Goldie Ashokbhai Shah, In re - [2025] 181 taxmann.com 430 (AAR - GUJARAT)
Judiciary and Counsel Details
- Sushma Vora & Vishal Malani, Member
- Atul Gupta, Authorised representative for the Applicant.
Facts of the Case
The applicant was one of the seven owners of a residential building. The applicant, along with the owners of the property, agreed to lease its residential building to a company that was not registered under the GST regime. The company will use the said property to further provide long-term residential accommodation to students and working professionals. The applicant sought a ruling on whether the service of renting a residential building to a non-registered person for use as residential accommodation for students and working professionals was exempt as per Entry No. 12 of the Exemption Notification.
AAR Held
The AAR, Gujarat ruled that the applicant was not eligible for exemption under Entry No. 12 of the Exemption Notification. Entry No. 12 of the Exemption Notification requires that the property rented must be a residential dwelling and must be given for use as a residence. The property in question was a commercial building, and the company intended to use it for providing accommodation to students and working professionals. This negated both conditions of the exemption entry. The exemption entry was amended to confine relief to personal residential use, not commercial accommodation businesses. The legislative intent was to exempt only those supplies of renting of immovable property that are used as residences in the personal capacity and are not used for commercial purposes, be it by a registered person or a non-registered person.
List of Cases Referred to
- Thai Mookambikaa Ladies Hostel v. UOI [2024] 160 taxmann.com 667/103 GST 295/84 GSTL 209 (Madras) (para 6)
- P.N. Karkhanis v. P.N.Chopra Manu/DE/0238/1976 (para 6)
- Taghar Vasudeva Ambrish v. Appellate Authority for Advance Ruling [2022] 135 taxmann.com 287/91 GST 750/63 GSTL 445 (Karnataka) (para 6)
- Bandu Ravji Nikam v. Acharyaratna Deshbhushan 2003(3) Bom CR 210 (para 6)
- Kunhayammed v. State of Kerala [2000] 245 ITR 360/113 Taxman 470 (SC) (para 15)
- UOI v. West Coast Paper Mills Ltd. 2004 (164) E.L.T. 375 (S.C.) (para 15)
- State of Karnataka v. Taghar Vasudeva Ambrish [SLP Diary No. 29980/2022, dated 24.11.2023] (para 15).
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