Important Keyword: Notification No. 15/2022 – Union Territory Tax (Rate), GST rent exemption, UT Tax renting amendment, proprietorship GST compliance, S. No. 23A omission, GST renting residential dwelling, GST exemption proprietors, UT Tax amendment 2022, GST notification updates,
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Table of Contents
[F. No. CBIC-190354/316/2022-TRU Section-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, 30th December, 2022.
Notification No. 15/2022 - Union Territory Tax (Rate): Seeks to amend notification No. 12/2017- Union Territory 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 7, sub-section (1) and (3) of section 8 and clause (iv) and clause (xxvii) of section 21 of the Union territory Goods and Services Tax Act, 2017 (14 of 2017), read with 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-Union Territory 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. 703 (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 01st 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 – Union Territory Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 703 (E), dated the 28th June, 2017 and last amended by notification No. 04/2022 – Union Territory Tax (Rate), dated the 13th July, 2022 vide number G.S.R. 546(E), dated the 13th July, 2022.
📚 Frequently Asked Questions (FAQs): Notification No. 15/2022 - Union Territory Tax (Rate)
Q1: What is Notification No. 15/2022 – Union Territory Tax (Rate)?
Answer:
Notification No. 15/2022 – Union Territory Tax (Rate), issued on 30th December 2022, amends Notification No. 12/2017–UT Tax (Rate). It clarifies exemption on renting of residential dwellings to registered proprietors and also removes entry S. No. 23A effective from 1st January 2023.
Q2: What clarification does this notification provide regarding renting of residential property?
Answer:
The notification specifies that exemption applies when a proprietor of a proprietorship concern rents a residential dwelling in his personal capacity for use as his own residence, and not for the business of the concern.
Q3: Why was this clarification necessary?
Answer:
Many taxpayers were confused whether proprietors renting houses in their name but registered under GST as business owners could claim exemption. This notification ensures that the exemption is valid only when the rent is for personal residential use, not for business purposes.
Q4: What change has been made by omitting S. No. 23A?
Answer:
S. No. 23A (relating to certain specific service exemptions) has been removed. This means such exemptions will no longer apply from 1st January 2023, ensuring uniform tax treatment.
Q5: From when is Notification No. 15/2022 – UT Tax (Rate) effective?
Answer:
The provisions under this notification are effective from 1st January 2023.
Q6: How does this impact proprietorship businesses under GST?
Answer:
Proprietors must carefully differentiate between personal residential rental and business rental. If the rent is for personal residence, exemption continues. If rented for business or office use, GST will apply. For professional compliance support, you can consult a GST Expert.
Q7: How can taxpayers ensure compliance with this amendment?
Answer:
Check rental agreements to confirm whether property is used personally or for business.
File GST returns accordingly using GST Return Filing services.
Seek professional advice from Finodha GST Compliance experts.
Q8: What related updates should businesses be aware of?
Answer:
This notification ties into a broader set of GST reforms in 2022–23 where exemptions were rationalized, and composition schemes for sectors like brick kilns were updated. Businesses setting up operations should also explore Private Limited Registration or MSME Registration for tax benefits.
Download PDF: Notification No. 15/2022 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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