Authority of Advance Ruling

Accommodation costs for students are set to increase as a 12 percent GST will now be applied to rent payments for hostel accommodations and by paying guests, as per the recent order issued by Advance Rulings in Karnataka.In two distinct rulings, the Uttar Pradesh and Karnataka Authority of Advance Rulings’ (AAR) have classified these accommodations as ‘non-residential,’ making them liable for 12 percent GST, similar to small hotels and inns.The Bengaluru bench of the AAR has clarified that hostels are not considered residential dwelling units and, as a result, are not exempt from Goods and Services Tax (GST). The AAR’s ruling was in response to an inquiry from Srisai Luxurious Stay LLP. Additionally, the AAR stated that accommodation services offered by hotels, clubs, campsites, etc., wit...

NEW DELHI: 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 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...

Tag: Authority of Advance Ruling

Rent on Hostels and Paying Guest Accommodations to Now Attract 12% GST; Students to be Impacted

Hostel rent, PG accommodation to attract 12% tax, says Karnataka AAR