New Delhi: Parliament lit up ahead of the launch of the ‘Goods and Services Tax (GST)’ in New Delhi on Saturday midnight. PTI photo by Manvendra Vashisht (PTI6_30_2017_000252B) | Photo Credit: PTI
CBIC has said that from January 1, GST will not be payable on residential units rented out to the owner of the proprietary establishment solely for residential use.
The Central Board of Indirect Taxes and Customs (CBIC) in its meeting on December 17 also notified revisions in GST rates with effect from January 1, 2023, for certain goods and services as per the recommendations of the GST Council.
Ethyl alcohol supplied to refineries for blending with motor spirit (petrol) will attract 5% GST from January 1, down from 18% at present. Also, the rate of tax on husk of pulses has been reduced from 5% to nil.
In the notification, the Board further prescribed 12% GST on ‘fruit pulp or fruit juice based beverages’ (other than carbonated beverages).
CBIC has also notified that with effect from January 1, 2023, no GST shall be payable where residential accommodation is let out to the owner of a registered proprietary concern, if such accommodation is intended to be used only as his residence. hired in his personal capacity for ,
However, the proprietor will however be liable to pay GST at 18% on the basis of Reverse Charge Mechanism (RCM), if such accommodation is being used for his proprietary concern.
AMRG & Associates Senior Partner Rajat Mohan said, “It is an appropriate notification which will maintain a tax-neutral status for renting out residential accommodation to owners of a going concern owned only for residential use.”