The Karnataka Authority for Advance Ruling (AAR), has recently, in an application filed before it, held that renting of commercial building is taxable under GST.
The aforesaid observation was made by the Karnataka AAR, when an application was filed before it by M/S Nagabhushana Narayana, through Smt. G Prabhavathi, the GPA holder, seeking an advance ruling from the Authority.
The facts pertaining to the application filed were that, the applicant was an OCI card holder, residing at California, United states of America, having immovable property at Bangalore, India, which was given on rent to tenants.
The applicanthad sought the authority’s ruling on the questions as to whetherthe applicant is liable to register in Karnataka under KGST/ CGST Act, 2017 and also as to whether the applicantis required to pay tax on renting of commercial building.
Hearing the contentions of Shri Rajesh Kumar T R, C A, the authorised representative of the applicant, the AAR panel of Dr M.P Ravi Prasad (Member) and Kiran Reddy T (Member), ruled:
“TheGPA is the supplier of service and is liable to be registered under in Karnataka under KGST/CGST Act, 2017. The GPA holder is required to pay tax on the supply of renting of immovable property service of commercial building”
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