The act of agreeing to grant easement rights of the pathway by the applicant by way of shared access is classifiable under SAC 999794 and taxable @18% GST
Levy of GST— In the instant case, applicant has sought Advance Ruling on the following question:
Whether leasing of pathway to a person to her/his dwelling unit by CMRL is taxable under GST?
The applicant has stated that according to notification No. 12/2017-Central Tax (Rate), renting of residential dwelling unit for use as a residence is exempt from GST. Hence, grant of tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or periodic rent or both is exempt.
The Central Jurisdictional officer appeared and gave a written submission that this lease is a supply under GST and this supply of easement right is not exempt under Notification 12/2017 as exemption is only for dwelling unit of residential purpose and not for accessing land.
Held that— The applicant has agreed through a MOU to tolerate her use of this pathway for a period of time for consideration. Hence, this service of agreeing to grant easement rights is a service of agreeing to tolerate an act and is classifiable under SAC 999794 under ‘other miscellaneous services’/ ‘Agreeing to tolerate an act’.
‘Other miscellaneous services’ classifiable under SAC 9997 are taxable 18%