Page 14 - Ch3_RCM

CCP 03.03.16.01

State the person liable to pay GST in the following independent services provided:-
1) Siddhi Builders, registered in Haryana, rented out 20 residential units owned by it in Sanskriti
Society to Rudra Technologies, an IT based firm registered in the State of Haryana, for
accommodation of its employees.
2) M/s. Purohit Consultants, a partnership firm registered in Delhi as a regular tax payer, paid

sponsorship fees of ₹ 70,000 at a seminar organized by a private NGO (a partnership firm) in
Delhi. [CA Inter RTP May 23]
Answer:

1. Legal Provision:-
Ü Services provided to an unregistered person by way of renting of residential dwelling for use as
residence is exempt from GST.
Ü If the residential dwelling is rented to a registered person, exemption is not available.
Ü Further, as per section 9(3) of CGST Act, 2017, tax on service provided by way of renting of

residential dwelling to a registered person is payable by the recipient under reverse charge.
Discussion & Conclusion:-
Ü In given case, Rudra Technologies is liable to pay GST on the residential dwellings taken on rent by
it from Siddhi Builders, under reverse charge mechanism.

2. Legal Provision:-
Ü As per section 9(3) of CGST Act, if sponsorship services are provided by any person to a body
corporate or a partnership firm located in taxable territory, GST is payable by recipient under
reverse charge.
Discussion & Conclusion:-

Ü In given case, sponsorship services are provided by the private NGO to a partnership firm – M/s.
Purohit Consultants.
Ü Therefore, Purohit Consultants is liable to pay GST under reverse charge.

CCP 03.03.17.00
From the following information, determine the person liable to pay GST given that both Supplier and
Recipient are located in India:-

1 Mr. Atul is an agent of Life Insurance Co. The insurance company pays commission (excluding tax) `6
Lakh to him. Mr. Atul claims that no GST is leviable on services provided by him as his value of
taxable service does not exceed 20 lakhs. ₹

2 XYZ Ltd. availed services of Vimal Goods transport agency for transportation of goods by road from
factory located in New Delhi to its Jaipur depot and paid freight of 1,00,000. ₹
3 Ranka Jewellers Ltd. paid 50 lakhs for sponsorship of Miss India beauty pageant. ₹
4 Legal services provided by VHB & Co., a partnership firm of Advocates, New Delhi to Tata Motors
Ltd, Mumbai for 70,00,000. ₹

5 Infrastructural support services provided by Government to a business entity for `14 Lakh
6 Renting of immovable property services provided by Government to unregistered business entity for
Rs. 18 Lakhs.

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