Notification No. 15/2022 – Central Tax (Rate) Explained

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Notification No. 15/2022 - Central Tax (Rate): Seeks to amend notification No. 12/2017- Central Tax (Rate)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]

G.S.R. (E). -In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) and (3) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendments further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:—

In the said notification,

against S. No. 12, in column (3), after the entry, the following explanation shall be inserted, namely: -
“Explanation. - For the purpose of exemption under this entry, this entry shall cover services by way of renting of residential dwelling to a registered person where, –

the registered person is proprietor of a proprietorship concern and rents the residential dwelling in his personal capacity for use as his own residence; and
such renting is on his own account and not that of the proprietorship concern.”;

S. No. 23A and the entries relating thereto, shall be omitted.

2. This notification shall come into force with effect from the 01^st day of January, 2023.

(Rajeev Ranjan)
Under Secretary

Note: The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 - Central Tax (Rate), dated the 28^th June, 2017, vide number G.S.R. 691 (E), dated the 28th June, 2017 and last amended by notification No. 04/2022 - Central Tax (Rate), dated the 13th July, 2022 vide number G.S.R. 544(E), dated the 13^th July, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 15/2022 - Central Tax (Rate)

Q1: What is Notification No. 15/2022 – Central Tax (Rate)?

Answer:
Notification No. 15/2022 – Central Tax (Rate), issued on 30th December 2022, amends Notification No. 12/2017 – Central Tax (Rate). It clarifies the exemption on renting of residential dwellings to registered proprietors and omits certain earlier provisions.

Q2: What changes were made regarding residential dwelling rent under this notification?

Answer:
The notification explains that exemption for renting of residential dwellings applies only when the registered person is a proprietor renting it in his personal capacity for his own residence, and not on behalf of the proprietorship concern.

Q3: Which entry has been omitted through Notification No. 15/2022 – Central Tax (Rate)?

Answer:
Entry 23A and its related provisions have been removed from Notification No. 12/2017 – Central Tax (Rate).

Q4: From when are the changes under Notification No. 15/2022 effective?

Answer:
The notification came into effect from 1st January 2023.

Q5: Why was Notification No. 15/2022 issued?

Answer:
It was issued in public interest on the recommendations of the GST Council, to bring clarity regarding the scope of exemption on renting services and streamline the tax structure.

Q6: How does this affect proprietorship firms renting houses?

Answer:
If the proprietor rents a house personally for his own residence, the exemption applies. However, if the house is rented in the name of the proprietorship firm for business use, GST exemption will not apply.

Q7: Where can I get expert help in understanding GST notifications?

Answer:
You can consult a GST Expert for detailed guidance. For GST Compliance, GST Registration, or GST Return Filing, Finodha provides professional assistance.

Q8: Are there related updates to keep track of?

Answer:
Yes ✅. Earlier, Notification No. 04/2022 – Central Tax (Rate) also amended Notification No. 12/2017 – Central Tax (Rate). Hence, taxpayers should review both to stay compliant.