Classification of service— The present appeal has been filed against the Advance Ruling  issued by Authority for Advance Ruling, Andhra Pradesh.

The contention of the appellant is that they are eligible for exemption from the payment of GST on the monthly rentals received on lease of the residential building at Telangana to D-Twelve Spaces Private Limited, as per SI.No.13 of the Notification No.9/2017-(IT) Rate Dated 28.06.2017.

The lower authority had clearly brought in its Order that for the exemption to apply, the following conditions are to be satisfied:

(I) There must be a service of renting

(ii) of a residential dwelling

(iii) for use as residence.

The Appellant has also laid out its appeal on the same lines as stated above.

The Lease Property in question is not a “residential dwelling” and has not been “used as residence” by the recipient (the Lessee). We therefore agree with the Ld. AAR, Andhra Pradesh, that the supply under consideration is classifiable under 'Rental or leasing services involving own or leased non-residential property'. Such “Rental or leasing services involving own or leased non-residential property” is classified under the heading (SAC) 997212 under entry no.16 of Notification No.8/2017 Integrated Tax (Rate), Dt: 28.06.2017, and liable to IGST @ 18%. The exemption under SI. No.13 of Notification No.9/2017-IT (Rate) is not available to the Appellant.

Held that— The order of lower authority hereby upheld.