Example

There are two floors in the house out of which ground floor is given on rent for commercial purpose and first floor is given on rent for residential use. Such renting for two different purposes are definitely not naturally bundled in the ordinary course of the business. How to deal with this situation in GST if:
Separate rent deed is executed?
Single rent deed is executed?

Answer

If the separate rent deed is made for renting of first and second floor. There is no complexity.

As the renting for residential use is covered under exemption list under GST and hence no GST on the same is payable, but the one rented for commercial purpose attracts GST liability. 

But if single rent deed is executed then it will be treated as mixed supply as defined under section 2(74). As there is no principal supply, therefore, according to Section 8(b) it will be treated as a service comprising entirely of such service which attracts highest liability of tax. Since the renting for commercial use attracts tax liability and the other supply in mixed supply is exempt from tax so the entire bundle would be treated as renting of commercial property and taxed accordingly.