The Rajasthan bench of the
Authority for Advance Rulings has held that GST (Goods and Services Tax) is
applicable on the rent if a residential property is used for commercial purpose
by a lessee (who is registered for GST purposes).
In the case of Deepak Jain (the applicant) who had leased out his property to a
private limited company, which was engaged in back-office operations, the AAR
observed that, up to July 17, 2022, renting of residential dwellings for use as
a residence was exempt from GST, while renting for commercial use was taxable
at 18%.