Page 212 - GSTL_21st May 2020_Vol 36_Part 3

458 GST LAW TIMES [ Vol. 36
3. The applicant has sought advance ruling in respect of the following
questions :
(1) Whether exemption prescribed under Entry Number 13 of Notifica-
tion No. 9/2017-Integrated Tax (Rate), dated 28th June, 2017 can be
sought and the lessors (here Ambrish Vasudeva and 4 others) need
not charge GST while issuing the invoice for the lease service to
M/s. D. Twelve Spaces Pvt. Ltd.?
(2) Whether the lease service falls under the Exemption prescribed and
can be described as “Services by way of renting of residential swell-
ing for use as residence”? as listed in the aforesaid Notification?
4. The applicant furnishes some facts relevant to the stated activity.
(a) The applicant along with four others collectively has let out a Resi-
dential complex to M/s. DTwelve Spaces Pvt. Ltd which is engaged
in the business of providing affordable residential accommodation
to students on a long term basis (starting from 3 to 11 months).
Along with such accommodation, the Company is also engaged in
providing a host of other services such as maintenance, food, Wi-Fi
etc. generally called as a Paying Guest Accommodation.
(b) The applicant contends that “renting of immovable property” is
covered under Schedule II of CGST Act, 2017 which defines it as the
supply of services on which the applicable GST rate is 18%.
(c) The applicant further states that Schedule II enlists activities to be
treated as supply of goods or as supply of services. Entry 2(b) reads
as any lease or letting out of the building including a commercial,
industrial or residential complex for business or commerce, either
wholly or partly, is a supply of services.
(d) The applicant further refers to the Notification No. 9/2017-
Integrated Tax (Rate), dated 28th June, 2017 in which certain exemp-
tions have been prescribed for specified activities. Entry 13 of such
Notification provides that : “Services by way of renting of residen-
tial dwelling for use as residence” are exempt from GST.
(e) Further M/s. DTwelve Spaces Pvt. Ltd. has entered into sub-lease
agreement with students for providing residential accommodations
with living amenities, security, entertainment facilities for a long
stay for a period varying from 3 months to 11 months. Thereby,
DTwelve has concluded that the rental accommodation services
provided by DTwelve to the students will not attract GST. Conse-
quently, there would be no GST obligation on DTwelve in case of
lease arrangement with their lessor too (Here Ambrish Vasudeva
and 4 others). Therefore, DTwelve is of the opinion that the lessor
should not charge GST to DTwelve when issuing the invoice for the
lease service.
5. Regarding the relevant facts that have a bearing on the questions
raised, the applicant states as under :
(a) Schedule II enlists activities to be treated as supply of services. En-
try 2(b) reads as any lease or letting out of the building including a
commercial, industrial or residential complex for business or com-
merce, either wholly or partly, is a supply of services.

GST LAW TIMES  21st May 2020  212