On 27.09.2022, in a matter argued Revenue admitted that the impugned Notification has failed to differentiate between the premises taken on rent for personal use and taken on rent for business and that further steps would be taken to suitably modify the exemption notification.
Consequently, the aforesaid clarification that renting of a residential dwelling by a proprietor of a registered proprietorship firm, who rents it in his/her own personal capacity for use as his/her own residence as well as not
for use in the course or furtherance of business of his/her proprietorship firm and such renting is on his/her own account and not that of proprietorship firm shall be exempt from GST, is accepted by this Court.
The revenue further undertook, that in the meantime the residential accommodation taken on rent for personal use will be treated as exempt.
And Hon’ble Delhi High Court bound the Central Government and Government of NCT of Delhi, by this undertaking that they will levy and collect GST only in those cases wherein the residential accommodation is taken on rent by the registered person in the course or furtherance of its business.
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