MH AAR: GST Exemption for Hostel Rent of up to INR 1k Per Day

The Maharashtra Authority of Advance Ruling (AAR) ruled that Goods and Service Tax (GST) is privileged on Hostel Rent of less than Rs. 1000 per day for one Student.

The applicant is the owner of M/s. Ghodawat Eduserve LLP used to furnish commercial training and coaching services to his students who appear for the 11th and 12th standards who urge to appear for IIT and other courses, particularly in the science section. They also give the hostel facilities to the students on-demand basis and for the same they used to charge separately. The service of the hostel is an optional choice and does not hold in the package form. The hostel gives the normal residential facilities needed to stay and study which consists of well maintained and furnished residence, light, water, etc. and acknowledging the hostel charges with the basic lump-sum fee of Rs. 34,000/- per year per student i.e. Rs. 95/- (Approx.) per day. The hostel is available for the candidates learning in the schools nearby.

The petitioner seeks the advance ruling on the problem of whether the activity to furnish the hostel on rent to several students through the petitioner gets concession that if the hostel fees charges per student per day are lower than Rs 1000 and if this is the scene then it gets concession it will be claimed as the exempt beneath the “serial number 12 or serial number 14 of Notification No. 12/2017- Central Tax (Rate) (as amended time to time) on June 28, 2017.”

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The two judges Rajiv Magoo and T.R.Ramnani held that the privileged beneath Sr. No. 14 is available for the services furnished through the “hotel inn, guest house, club, or campsite, for the residential or lodging, posing the value of supply of a unit of accommodation below Rs.1000/- per day or equivalent.”