ARA gives its decisions only after proper reviewing the available arguments, documents and information.

GST DOST's BLOG

ARA gives its decisions only after proper reviewing the available arguments, documents and information.

When the Advanced ruling authority gives its ruling, it not only looks at the sayings of the applicant says but also takes a cursory look at the documents and information that are submitted to find out the essence of the transaction.

In the instant case, the applicant states that he has leased his residential dwelling to be used as a dwelling. So he believes that GST will not be paid on the rental income.

But the authority did not accept the applicant's argument. They said that they review the agreement and Resident Enrollment Form minutely and then find that:

(1) The number of rooms in the building is 73 with necessary amenities;

(2) Those who live there are also given other facilities for food and hospitality, and by seeing the manner in which rent is charged from them, it seems that a lodge is running in the building.

(3) The lessee has the right to deploy branding strategies like hoarding, posters and others.

And so the building is a non-resident building and it appears that the applicant has given building on rent for commercial activity. Therefore, GST will be levied on the rent received @18%. SAC Code 997212 will be used in the bill.

Applicant

Laxmi Tulasmi Quality Fuels

Source

Advance Ruling Authority, Andhra Pradesh

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