A residential flat used as a company guest house or employee accommodation may still trigger GST review. Since Notification 05/2022 amended the reverse-charge notification, renting of residential dwelling to a registered person became a specific control point.
Notification 05/2022-Central Tax (Rate) amended Notification 13/2017 to include service by way of renting of residential dwelling to a registered person, with the registered person as recipient under reverse charge. Finance teams should therefore identify residential property rent paid by registered entities and evaluate RCM.
| Use case | GST control | Documents |
|---|---|---|
| Company guest house in residential apartment | Check residential dwelling to registered person RCM entry. | Lease deed, GSTIN status, board/HR approval. |
| Flat rented for employees/directors | Review whether recipient under lease is registered business entity. | Lease agreement, payment records. |
| Director/employee personally rents house and gets reimbursement | Different facts: identify actual recipient and contract party. | Lease name, reimbursement policy. |
| Commercial property incorrectly described as residential | Classify property/lease correctly. | Property documents, municipal category, lease terms. |
This draft uses official GST law, rules, GST Council, CBIC/GST portal and government-source material only. Before publishing, re-check whether any notification, circular, rule text or portal workflow has changed after the draft date.