GST Registration to be taken by GPA Holder who Entered into Leasing of Commercial Building: AAR

Case Details: Authority for Advance Rulings, Karnataka Nagabhushana Narayana, In re - [2023] 150 taxmann.com 304 (AAR-KARNATAKA)

Judiciary and Counsel Details

• • Dr M.P. Ravi Prasad & T. Kiran Reddy, Member
  • Rajesh Kumar T.K., CA (AR) for the Appellant.

Facts of the Case

The applicant was a non-resident Indian who owned an immovable property at Bangalore, India. He appointed his mother as General Power of Attorney (GPA) holder to manage property vide GPA registered on 22-5-2022 and property was given on lease rent. It filed an application for advance ruling to determine whether he would be required to register under GST.

AAR Held

The Authority for Advance Ruling noted that the applicant appointed his mother as GPA and mere possessing an immovable property does not require registration. The act of leasing of immovable property was taken up by his mother being GPA holder of said property and income from property, including rent would be received and retained by GPA holder.

Therefore, it was held that the GPA holder would be considered as supplier of service of leasing of building for commercial purposes and since GPA holder is a resident of Bengaluru, Karnataka, she would be liable to take registration under Section 22(1) of CGST Act.