Showing posts from July, 2017

Impact of GST on Rentals from Immovable Property

Rental from Immovable Property in GST Regime
Under GST Regime, “renting of immovable property” is included in schedule II which defines it as supply of services on which the GST rate is 18%. However Entry no. 12 of exemption Notification no. 12/2017 dated 28.06.2017 exempts the services by way of renting of residential dwelling for use as residence, meaning thereby that if the residence dwelling is leased out for commercial purposes then no exemption will apply and the rental from such residential property being leased out for commercial activity shall be taxable to GST.

Supply is Interstate or Intrastate, a tricky proposition
The concept whether the supply is interstate or intrastate is new so far as services are concerned. In pre GST regime service tax was a Central Tax there was no State Tax on services. But in GST regime supply of services are subject to Central Tax as well as State Tax in the like manner as applicable in case of supply of goods. With this structural shift the need t…


Measures for promoting affording housing “It is proposed to exempt service tax on construction of affordable houses up to 60 square meters under any scheme of the Central or State Government including PPP Schemes.”
After a prolonged demand from industry, the Central Government announced above incentive and vide Notification no. 9/2016 dated 01stMarch 2016 came up with a scheme of exemption from service tax liability pertaining to low cost houses up to carpet area of 60 sq meters to be developed by private developers. Before any new project could have seen the light of day under new exemption notification, and start under the new scheme, there comes a GST from 1st of July 2017 whereby this exemption to affordable housing by private builders, from service tax stands omitted in the new list of exempted services approved by GST council. Thus the group housing projects proposed by private builders up to a carpet area of 60 square meters no longer qualify for exemption in the GST regime. The…