Tag: GST

Latest StoriesRegulatory

No GST on Leasing Residential Premises as Student Hostels: SC

NEW DELHI: The Supreme Court ruled on Thursday that leasing residential premises to entities utilizing them as hostels for students and working professionals is exempt from GST. Justices JB Pardiwala and KV Viswanathan upheld the Karnataka High Court’s decision, affirming that such leasing practices are indeed exempt under GST. “In this instance, the primary purpose of the property as a residence is unchanged. Imposing an 18% GST on the transaction between the respondent No. 1 and the lessee, M/s DTwelve Spaces Private Limited, would eventually burden students and working professionals, undermining the legislative intent of providing exemptions for residential use,”…

Latest StoriesRegulatory

SC Halts GST Demand on Real Estate Joint Development Deals

MUMBAI: The Supreme Court has put a hold on a goods and services tax (GST) demand linked to a joint development agreement (JDA) for a real estate project, a ruling that could significantly affect real estate developers and landowners nationwide. JDAs are commonly used as they permit developers to access land without making an upfront payment. Authorities are attempting to categorize the transfer of land development rights under JDAs as a taxable ‘supply of service’ according to GST regulations. Developers contest this classification, asserting that the agreement fundamentally involves a ‘transfer of land’, which falls outside the GST framework. A…

Latest StoriesResidential

Apartment Owners Demand RWA GST Rollback

BENGALURU: The Goods and Services Tax (GST) Council is set to review certain GST slabs starting Wednesday. In response, the Bangalore Apartments’ Federation (BAF) has launched a petition aiming to eliminate the 18% GST on apartment maintenance fees. According to federation members, the notification issued in 2019 has placed an unfair financial strain on Residents’ Welfare Associations (RWAs) and apartment owners alike. The petition, hosted on change.org by BAF, claims, “The notification mandates that GST is applicable on the entire monthly maintenance fees collected by RWAs if charges exceed Rs 7,500 per month per member or unit.” It emphasizes how…