Renting Residential Dwelling to Educational Body Not Taxable Under GST | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 13 March, 2026

Latest from Taxmann

GST exemption renting residential dwelling

Case Details: Bhandary Gas Agency vs. Joint Commissioner of Commercial Taxes, DGSTO, SHIVAMOGGA - [2026] 184 taxmann.com 146 (Karnataka)

Judiciary and Counsel Details

  • S.R. Krishna Kumar, J.
  • Smt. Krishika Vaishnav & A. Mahesh Chowdhary, Advs. for the Petitioner.
  • K. Hema Kumar, AGA for the Respondent.

Facts of the Case

The petitioner had leased a residential property to an educational foundation for use as accommodation for students, staff and teachers. It had paid GST on the rent received and subsequently claimed refund on the ground that the transaction was exempt under Entry 13 of ‘Notification No. 9/2017-Integrated Tax (Rate), dated 28-06-2017,’ which provides exemption for renting of residential dwelling for use as residence. During audit proceedings, the exemption was initially accepted; however, it was subsequently reversed and the refund claim was denied. The Petitioner’s objections and appeal were rejected, leading to the filing of a writ petition before the High Court.

High Court Held

The High Court held that Entry 13 of Notification No. 9/2017-Integrated Tax (Rate), dated 28-06-2017, issued under Section 6 of the IGST Act, exempts the renting of residential dwelling when used as residence. The Court observed that the term ‘residential dwelling’ refers to residential accommodation and is distinct from commercial establishments such as hotels. It further held that the use of such premises as hostel accommodation for students, staff or teachers constitutes residential use. Accordingly, leasing such residential premises was not exigible to GST and the impugned order denying refund was set aside.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied