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The Tax Publishers 2022 TaxPub(GST) 1515 (Del-HC) : (2023) 111 ITPJ (G) 0562
CENTRAL GOODS SERVICES ACT, 2017
Section 11
Renting of a residential dwelling to a proprietor of a registered proprietorship firm who rents it in his personal capacity for use as his own residence and not for use in the course or furtherance of business of his proprietorship firm and such renting is on his own account and not that of the proprietership firm, shall be exempt from tax under Notification No. 04/2022-Central Tax (Rate), dated 13-7-2022.
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Exempted services - Renting of immovable property - Residential accommodation rented by proprietor for use as his own residence -
Assessee challenged clause (A)(b) of Notification No. 04/2022-Central Tax (Rate), dated 13-4-2022, as unsustainable being ultra vires article 14 of the Constitution of India. By way of the above notification, the exemption granted by a previous Notification dated 28-7-2017 for renting of residential accommodation is no longer available to tenants who are registered under GST.Held: The government has clarified that renting of a residential dwellig to a proprietor of a registered proprietorship firm who rents if in his personal capacity for use as his own residence and not for use in the course or fuurtherance of business of his proprietorship firm and such renting is on his own account and not that of the proprietership firm, shall be exempt from tax under Notification No.04/2022-Central Tax (Rate), dated 13-7-2022. The aforesaid clarification has been accepted by the court.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. :
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