Page 215 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : TAGHAR VASUDEVA AMBRISH 461
as a group of persons they are providing the services, after pooling
in their assets. As could be noticed from the agreement, the contract
is not between the individuals and the Company, but between the
group of individuals and the Company, which needs to be high-
lighted.
Since, the applicant is not providing service to the Company, but as a part of the
group, for the transaction between the Group and the Company, invoice needs to
be issued by the Group to the Company and the transaction between the indi-
viduals and the Group are a different transactions, as the individuals are distinct
from the Group of Individuals. The exact nature of the group cannot be ascer-
tained and it is not a question and hence it is not answered. It is suffice here only
to rule that the question of charging or not charging GST for the transaction be-
tween the applicant and the Company does not arise as the applicant himself is
not effecting any supply of service to the Company directly.
9. Regarding the first question, the related entry is verified and found
that the same reads as under :
“Entry 13. Heading 9963 or Heading 9972 - Services by way of renting of
residential dwelling for use as residence”
This is related to “renting of residential dwelling” “for use as residence”. The
contract of the applicant group with the Company is verified and found that
what is given is an immovable property consisting of only rooms with attached
toilets as per the Layout of the leased premises annexed to the Lease agreement
and does not fit into the meaning of a dwelling which means a house. They are
like hotel rooms and the entire leased premises has 42 rooms, which can by no
imagination be termed as a residential dwelling. Even if the same is given for
residential purposes, the services provided is not for use as residence by the les-
see. Services by a hotel, inn, guest house, clubsite or campsite, by whatever name
called, or other commercial places for residential or lodging purposes are cov-
ered by different entries in the schedule of this notification or under different
notifications and this shows that rooms though given on rent for residential pur-
poses would not amount to residential dwelling and hence the entry is not appli-
cable for the transaction of the lessor with the lessee.
10. Regarding the second question in para 3 above, the same has been
discussed in para 9 above and is answered in negative.
11. In view of the foregoing, we rule as follows
RULING
(1) The exemption prescribed under Entry No. 13 of Notification No.
9/2017-Integrated Tax (Rate), dated 28th June, 2017 cannot be
sought and the lessors (as an entity) have to charge GST while issu-
ing the invoice for the lease services to M/s. DTwelve Spaces Pvt.
Ltd., provided they are registered under the GST Act.
(2) The lease services does not fall under the exemption “Services by
way of renting of residential dwelling for use as residence” as listed
in Entry 13 of Notification No. 9/2017-Integrated Tax (Rate), dated
28th June, 2017.

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GST LAW TIMES  21st May 2020  215