The expression "residential dwelling unit" is analyzed from the perspective of the working women, students, professionals and the like apart from the context of family as normally understood.
It is fairly settled that when word is not defined in the Act, it is permissible to refer to dictionaries to find out the meaning in common parlance.
Expression 'residence' and 'dwelling' have more or less same connotation in common parlance and no different meaning can be assigned to 'residential dwelling.'
AAR did not venture out to find out whether the accommodation provided by the taxpayer by renting out hostel rooms - will fall within the purview of 'residential dwelling for use as residence' and whether the inmates of the hostels are using the premises as residential dwelling or as commercial purpose.
A hypothetical example given - if the building consisting of 2 rooms and a kitchen and attached bathroom is rented out to a family of 4 members for residential purpose on a monthly rent, then no GST is levied. In this background, if 4 girls/students/working women join together and take a house on rent, this should also not be taxed under GST.
It is not the intention of legislature to tax poor people - an analogy is given to explain this better.
On adopting purposive interpretation, object of the legislature in issuing present notification is only to give exemption towards services which are in residential nature and not towards commercial nature.
To be eligible for exemption, service should be viewed from the perspective of recipient of service and not from the perspective of service provider who offers premises on rental basis.
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