Renting/Leasing Residential Premises For Use As Residence Exempt From GST: Delhi High Court

The Delhi High Court has held that GST cannot be levied on renting/ leasing of residential premises for use as residence.

Justice Sachin Datta clarified thus while dealing with a plea to quash an order passed by the Collector of Stamps directing the petitioner to pay allegedly deficient stamp duty on a lease deed executed with a private company, in respect of a residential property in city's Vasant Vihar area.

As per the Collector, stamp duty was deficient due to purported applicability of GST.

The Petitioner argued that Clause 6 of the lease deed unequivocally stipulates that the property shall be used solely for residential purposes, which is exempt from GST.

Even assuming applicability of GST, the Petitioner argued, its component does not form part of lease rent for stamp duty purposes.

The High Court referred to various notifications and circulars and found merit in the Petitioner's submissions. It observed,

“Entry No. 12 of the Central Tax Notification No. 12/2017 leaves no manner of doubt that renting/leasing of a residential dwelling for use as residence, is exempt from GST. As such, the view adopted by the respondent as regards deficit payment of stamp duty, is misconceived.”

In view of the above, the Court quashed the impugned order and directed the Collector to refund the amount paid by Petitioner towards alleged deficit stamp duty and penalty, within six weeks.

Appearance: Mr. Amish Tandon, Ms. Charchika Yadav, Advocates for Petitioner; Mr. Lalltaksh Joshi, Ms. Ananya Sanjiv Saraogi, Advocates for Respondent

Case title: Mr. Gurdev Raj Kumar v. Collector Of Stamps (Government Of Nct Of Delhi)

Citation: 2025 LiveLaw (Del) 1384

Case no.: W.P.(C) 1463/2021

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