Delhi HC: Renting of dwelling by sole proprietor for use as residence and not for business ‘exempt’

Delhi HC holds 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”; Petitioner is challenging Notification No. 04/2022-Central Tax (Rate) dated  July 13, 2022 by virtue of which exemption granted for  renting of residential accommodation to tenants who are registered under GST has been withdrawn; Petitioner avers that similarly placed businesses like itself who are doing their business as a proprietary concern are affected by this amendment; Accepting Revenue’s affidavit giving clarify on this aspect, HC concedes that residential accommodation taken on rent for personal use will be treated as exempt and “and all the respondents are held bound by the same” and accordingly, disposes the writ petition