Impact of GST on Renting of Residential Dwelling and Accommodation Services

Shelter is a basic human need crucial for survival. It provides security, personal safety and protection from the weather, and prevents ill health and disease. Adequate housing provides people with dignity and the opportunity to lead a normal life. To provide the shelter to everyone and to provide the residential dwelling at a low cost, Government had exempted the services by way of renting of residential dwelling for use as residence. As per S. No. 12 of Notification No. 12/2017-Central Tax (Rate)/ S. No. 13 of Notification No. 9/2017-Integrated Tax (Rate), services by way of renting of residential dwelling for use as residence is exempted from GST. However, the CBIC, in line with the recommendations made by the GST Council in its 47th Meeting held on 29.06.2022, has curtailed the exemption and made the following services taxable under reverse charge by way of Notification No. 04/2022-CT(R) dated 13-07-2022 read with Notification No. 05/2022- CT(R) dated 13-07-2022: Read more...