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PG Stay, Hostel Accommodation To Become Costly As It Will Attract 12% GST

The Authority of Advance Ruling (AAR) has ruled that students will face increased expenses for hostel accommodation due to the application of a 12 per cent Goods and Services Tax (GST) on the rent paid. This ruling was delivered in two distinct cases.
Uttar Pradesh Vs Institute Hostel Pvt Ltd Associates Senior Partner Rajat Mohan Services Tax Srisai Luxurious Stay Authority Of Advance Ruling

GST exemption: 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.
Uttar Pradesh Associates Senior Partner Rajat Mohan Authority Of Advance Ruling Vs Institute Hostel Pvt Ltd Srisai Luxurious Stay Services Tax

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