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Rental services

04 May 2019

We rendering the service of paying guest and we charge the rent on monthly basis of Rs 12,000 for per person per bed. Two bed are fixed in every room. And We have rent agreement with every tenant for 11 months. Can we take benefit of Circular read with 32/06/2018, read with notification 12/2017 if declared tariff is below 1000/- exempted.

Please revert ASAP.

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Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 04 May 2019

It seems your service come under Heading 9963 or Heading 9972: Services by way of renting of residential dwelling for use as a residence. When you have rental agreement with the tenant then such service comes under rental services rather than lodging or accommodation services. So, if building used for renting is residential dwelling and such tenant uses his tenancy rights for residence purpose but not commercial purpose then such service exempt under the above headings

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