Clarification on issues related to taxability of ‘Tenancy Rights’ under GST [Circular No.44/18/2018-CGST dated 02 May, 2018]

Transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable. However, renting of residential dwelling for use as a residence is exempt [Sl. No. 12 of notification No. 12/2017-Central Tax(Rate)]. Hence, grant of tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or periodic rent or both is exempt. As regards services provided by outgoing tenant by way of surrendering the tenancy rights against consideration in the form of a portion of tenancy premium is liable to GST. 

Read more at http://www.cbec.gov.in/resources//htdocs-cbec/gst/Circular_No.44.pdf