Rent For Hostels, Paying Guest Accommodation To Attract 12% GST

Rent For Hostels, Paying Guest Accommodation To Attract 12% GST

Students will have to shell out more for hostel accommodation as a 12 per cent GST would be applicable on the rent paid, the Authority of Advance Ruling said in two separate cases. The Bengaluru bench of the Authority of Advance Ruling (AAR) said hostels are not akin to residential dwelling units and hence are not exempt from Goods and Services Tax (GST). In an advance Ruling sought by Srisai Luxurious Stay LLP, the AAR said GST exemption was ap…

Rent on hostels stays, PG accommodations to attract 12% GST

Hostel stays or PGs have been categorised as ‘non-residential’ in two separate rulings by Uttar Pradesh and Karnataka AARs and hence will now be liable to 12 percent GST just like the small hotels and Inns.

Hostel accommodation to attract 12 per cent GST: AAR

In an advance Ruling sought by Srisai Luxurious Stay LLP, the AAR said GST exemption was applicable on the accommodation services, of charges up to Rs 1,000/- per day, provided by hotels, clubs, campsites etc. till July 17, 2022."PG/Hostel Rent paid by inhabitants do not qualify for GST exemption... as the services provided by applicant are not akin to renting of residential dwelling for use as residence," the Bengaluru bench said.

Hostel Accommodation To Attract 12% GST: Authority Of Advance Ruling

Students will have to shell out more for hostel accommodation as a 12% Goods and services tax would be applicable on the rent paid, the Authority of Advance Ruling said in two separate cases.The Bengaluru bench of the AAR said hostels are not akin to residential dwelling units and hence are not exempt from GST.In an advance Ruling sought by Srisai Luxurious Stay LLP, the AAR said GST exemption was applicable on the accommodation services, of cha…