From January 1, GST would not be payable on housing units rented to the proprietor of a proprietary concern for residential usage only, the CBIC has said. The Central Board of Indirect Taxes and Customs (CBIC) also notified amendments in GST rates effective from January 1, 2023 for certain goods and services, as per the recommendations of the GST Council in its meeting on December 17. Ethyl alcohol supplied to refineries for blending with motor spirit (petrol) will attract 5 per cent GST from January 1, lower than the 18 per cent currently. Also, tax rate on husks of pulses has been cut to nil, from 5 per cent. The notification further prescribes 12 per cent GST on ‘Fruit pulp or fruit juice based drinks’ (other than carbonated beverages). The CBIC has also notified that with effect from January 1, 2023, no GST would be payable where the residential accommodation is rented to a proprietor of a registered proprietary concern if such accommodation has been rented in his individual capacity to be used as his residence only. However, the proprietor would though be liable to pay GST on reverse charge mechanism (RCM) basis at 18 per cent in case such accommodation is being used for his proprietary concern. AMRG & Associates Senior Partner Rajat Mohan said, “This is a fair notification that would maintain a tax-neutral status for renting residential accommodation to proprietors of the proprietary concern for residential use only.”