A provides bldg on lease to B. B runs it as Girls Hostel. Does services supplied by B can be considered under Entry 12 Residential dwelling for residential use or can we claim exemption under entry 14 as rent charged < 1000 per day?
Also, Can Supply by A to B be considered exempt because end use by B to Students (furtherance of service) itself is exempt? Or if A should charge GST from B than will it be cost for B or B can Claim Refund?
No......
As per entry no.12 of Notification 12/2017 CT (R) : Services by way of renting of residential dwelling FOR USE AS RESIDENCE
is Exempted
In above kindly refer "FOR USE AS RESIDENCE" is Exempted, but Mr. B is using it as business by further subletting (girl hostel) .
Now As per Notification 46/2017 CT (r)
supply of food or drink provided by a mess or canteen is taxable at 5% without Input .
And As per entry no 14 of Notification 12/2017 CT (R) , Accomodation for per Room is below 1000/- per day is Exempted.
Hence if we refer all the above Notifications :
1.Services provided as renting of Building by Mr. A to B is Taxable .
(Note : Assume Mr A is Registered in GST)
2. Mr. B is providing fooding + Accomodation services is more then 1000/- per day for per unit is Taxable
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