Hostel gst News: If you live in a PG or hostel in any city then be ready to pay more rent. The Bengaluru bench of AAR, while dismissing an application, said that which residential units come under the purview of GST and which units are exempt, the bench said that hostels are like any other residential unit.
In this regard, the Bangalore Bench of the Authority of Advance Ruling has clearly said that the answer is no. AAR said that hostels come under the purview of GST. This means that living in hostels will be expensive and fees will be higher. The AAR said that hostels come under the purview of 12 per cent GST.
Hostels come under the ambit of GST
The AAR said on the application of Shreesai Stay LLP that any residential facility for which the daily charge was Rs 1000 was outside the purview of GST till 17 July. But this facility is not available to the occupants of PG hostels as the service provider is outside the category of residential units.
The Bengaluru bench held that the rent of PG/hostel is not eligible for GST exemption. Giving is not the same. The judgment said that residential premises are meant for permanent residence and do not include guest houses, lodges or such places.
