GST Amendment: Residential Dwelling Renting Exemption Explained

Rule Revision: G.S.R (E) exercises powers under various sections of the CGST Act, 2017, amending the June 28, 2017, notification (No. 12/2017-Central Tax).

Exemption Explanation: A new explanation is introduced against S. No. 12, clarifying the exemption for services related to renting a residential dwelling to a registered person.

Scope of Exemption: The exemption covers situations where the registered person, as a proprietor of a proprietorship concern, rents a residential dwelling for personal use as their own residence.

Personal Account Usage: Emphasizes that such renting is on the registered person's personal account, not that of the proprietorship concern.

Omission of S. No. 23A: S. No. 23A and its entries are omitted, indicating changes in the services covered under this section.

Effective Date: The amendment comes into force from January 1, 2023, providing businesses with time to adjust their operations accordingly.

Government Decision: The amendment reflects the government's commitment to clarity and precision in tax regulations.

Note: This change aims to streamline the taxation process related to renting residential dwellings, ensuring fair application and compliance.