Activity of providing hostel on rent for amount less than Rs. 1000 per day is exempt from GST: AAR

  • News|Blog|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 4 March, 2022

Classification of GST Services Hostel services - Heading No. 9963 [Accommodation food and beverage services]

Case Details: Authority for Advance Rulings, Maharashtra Ghodawat Eduserve LLP, In re - [2021] 132 taxmann.com 46 (AAR - MAHARASHTRA)

Judiciary and Counsel Details

    • Rajiv Magoo and T.R. Ramnani, Member

Facts of the Case

The applicant was engaged in services of commercial training and coaching service for students and it was also providing hostel facility to the students on demand basis and charging them additionally. It filed an application for advance ruling to determine whether activity of providing the hostel on the rent to various students by applicant would be exempt.

AAR Held

The Authority for Advance Ruling observed that it was providing residential facilities which included, well-maintained furnished residence, Light, water, etc., and in consideration, it was charging a nominal lump sum fee of Rs. 34,000/- per year per student, which came to Rs. 95/- (Approximately) per day. The hostel was also available for the students of the nearby schools.

As per the exemption under entry No. 14 of Notification No. 12/2012 – Central Tax (Rate), dated 28-6-2017, it was found that the services provided by hostel, for residential and lodging purposes would be covered by the scope of notification entry where the declared tariff of a unit of an accommodation would be below one thousand rupees per day. Thus, the activity of providing the hostel on the rent to various students by applicant would be exempt where hostel fees charged per student per day shall be less than Rs. 1000.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied