The AAR ruled that the property of the Applicant rented to the partnership firm for free eased the burden of rent to be paid by the firm and thus reduced the expenditure to be borne by the firm, consequently increasing the firm’s profits. Therefore, the AAR ruled that the rent free accommodation provided by the Applicant indirectly accrued as a profit for the firm which was enjoyed by the Applicant as a partner.Thus, the AAR held that the accommodation provided by the partner to the partnership firm, which is a separate person, was a supply in the course of and in furtherance of business under Section 7 of the CGST Act and was therefore exigible to GST.
Source : www.livelaw.in
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