Renting of residential dwelling for use as residence - residential dwelling - composite supply - principal supply - registration under Section 22 - taxable supply - interpretation of exemption notificationRenting of residential dwelling for use as residence - residential dwelling - interpretation of exemption notification - Whether the hostel accommodation supplied by the applicant is eligible for exemption under Entry No.12 of Notification No.12/2017-Central Tax (Rate) (and corresponding entries under TNGST/Integrated Tax notifications). - HELD THAT: - The Authority observed that 'residential dwelling' is not defined in the GST statute or the notification and relied on the ordinary trade parlance and earlier administrative guidance to distinguish residential dwellings from hotels and like temporary accommodation. The facts show the applicant operates a hostel providing accommodation on a per-bed basis together with ancillary services (food, housekeeping, etc.), issues licences and certificates specific to hostels/public buildings, and operates as a commercial supply rather than a letting of a residential home to a family. The Authority held that converting residential homes into subdivided, per-bed accommodation with bundled services and regulatory treatment as public/commercial buildings removes the character of 'residential dwelling'. Exemption notifications are to be strictly construed and the twin conditions of the entry (renting of a residential dwelling AND use as a residence) must both be satisfied; on the facts they are not. Reliance on contrary High Court authority was noted but the Karnataka order is the subject of a pending SLP and cannot be treated as conclusive. Applying these principles, the Authority concluded the applicant's hostel accommodation does not qualify as 'residential dwelling for use as residence' and therefore is not covered by the exemption entry. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry No.12 of Notification No.12/2017-CT(R) (and corresponding entries under the TNGST/Integrated Tax notifications).Taxable supply - registration under Section 22 - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the supply of hostel accommodation is not an exempt supply but a supply in the course of business, the Authority applied the registration threshold rule. The transaction constitutes a supply of service in furtherance of business and so, if the applicant's aggregate turnover in a financial year exceeds the statutory threshold, registration is required under the GST Acts. [Paras 7]The applicant must obtain GST registration in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 - taxable supply - The classification and rate applicable to the supply of hostel accommodation. - HELD THAT: - The Authority distinguished hotels (temporary stays with different facilities) from hostels (longer-term, basic accommodation). Applying the rate schedule in Notification No.11/2017 as amended, it placed hostel accommodation services under Heading 9963 and specifically under the entry for 'Accommodation, food and beverage services other than (i)-(v)' which attracts the rate specified in that entry. The Authority therefore fixed the rate applicable to the applicant's hostel services accordingly. [Paras 7]Hostel accommodation services fall under Tariff heading 9963 and are taxable at 9% CGST + 9% SGST (total 18%) under Sl. No. 7(vi) of Notification No.11/2017 as amended.Composite supply - principal supply - Whether in-house food and other ancillary services supplied along with accommodation form a composite supply and what rate applies to such composite supply. - HELD THAT: - The Authority applied the statutory definition of composite supply and the rule that the rate applicable to the principal supply governs the composite supply. The applicant furnishes accommodation along with food and ancillary services for a single consolidated charge; accommodation is the principal supply. Since the principal supply (hostel accommodation) is taxable at total 18% (9% CGST + 9% SGST), the composite supply is to be taxed at the rate applicable to that principal supply. [Paras 7]In-house food and other services supplied with accommodation constitute a composite supply whose tax rate is that of the principal supply; the composite supply is taxable at the rate applicable to the hostel accommodation (total 18%).Admissibility under Section 97(2) - Admissibility of Question No.5 in the application for advance ruling. - HELD THAT: - The Authority examined the scope of Section 97(2) and determined that Question No.5 does not fall within the matters on which an advance ruling may be sought under that provision. Accordingly, no ruling could be issued on that question. [Paras 6, 7]No ruling issued on Question No.5 as it does not fall within the scope of Section 97(2) of the GST Act.Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as renting of a 'residential dwelling for use as residence'; the applicant must obtain GST registration if aggregate turnover exceeds the threshold; hostel accommodation is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; supplies of food and other services bundled with accommodation are composite supplies taxed at the rate of the principal supply (total 18%); and no ruling was given on Question No.5 as it was outside the advance ruling jurisdiction.

Services by way of renting of residential dwelling for use as residence - exemption notification should be interpreted strictly - residential dwelling versus commercial/hostel accommodation - registration threshold under Section 22 - tariff heading 9963 (accommodation, food and beverage services) - composite supply and principal supplyServices by way of renting of residential dwelling for use as residence - residential dwelling versus commercial/hostel accommodation - exemption notification should be interpreted strictly - Whether the hostel accommodation supplied by the applicant is eligible for exemption under Entry No.12 of Notification No.12/2017-Central Tax (Rate) and the identical entries under the State notifications - HELD THAT: - The Authority examined the phrase 'residential dwelling' which is not defined in the GST statute and noted the erstwhile CBIC explanation that excludes hotels, guest houses and like places meant for temporary stay. Renting of a residential dwelling typically involves letting a house or part thereof for use as a home by a person or family without bundled amenities such as food or housekeeping. The applicant's activity involves per bed charging, subdivision of a house into multiple lettings, and provision of bundled services (food, housekeeping, security etc.), supported by licences and certifications required for hostels as public/commercial buildings. These features distinguish the supply from a residential dwelling let for use as a residence. Reliance placed on decisions concerning the domestic concept of 'residence' was held inapposite to the specific exemption language. Applying the principle that exemption notifications are to be strictly construed and the burden lies on the claimant to show applicability, the Authority concluded that the twin conditions of the entry-(i) renting of a 'residential dwelling' and (ii) use 'as residence'-are not satisfied. Accordingly, the hostel accommodation does not qualify for the exemption. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry No.12 of Notification No.12/2017-Central Tax (Rate) and the corresponding State and Integrated Tax notifications.Registration threshold under Section 22 - supply in course of furtherance of business - Whether the applicant is required to obtain GST registration - HELD THAT: - Having held that the hostel accommodation is a taxable supply of services in the course of furtherance of business (Section 7(1)(a) read with Schedule II Entry No.2(b)), the Authority applied the registration threshold rule under Section 22 which mandates registration for suppliers whose aggregate turnover in a financial year exceeds the statutory limit. The requirement to register is therefore conditional on the applicant's aggregate turnover exceeding the prescribed threshold. [Paras 7]The applicant is required to obtain registration in Tamil Nadu if its aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 (accommodation, food and beverage services) - residential dwelling versus commercial/hostel accommodation - Classification of the applicant's supply and the applicable rate of tax - HELD THAT: - The Authority analyzed Notification No.11/2017 (as amended) and noted the separate entries for various accommodation services. Observing that hostels are distinguishable from hotels and are basic accommodation provided for longer durations, the Authority held that hostel accommodation services fall under Heading 9963 and specifically under the residual accommodation entry (Sl. No.7(vi)) covering 'Accommodation, food and beverage services other than (i)-(v)'. Applying the rate structure in the Notification, the Authority concluded that the service is taxable at 9% CGST and 9% SGST (18% aggregate) under the said entry. [Paras 7]The supply of hostel accommodation falls under Tariff heading 9963 and is taxable at 9% CGST + 9% SGST (18% aggregate) under Sl. No.7(vi) of Notification No.11/2017-Central Tax (Rate) as amended.Composite supply and principal supply - tariff heading 9963 (accommodation, food and beverage services) - Whether in house food supplied to inmates is exempt when provided along with accommodation as a composite supply, and the applicable tax rate for such composite supply - HELD THAT: - The Authority applied the statutory definition of 'composite supply' which requires supplies to be naturally bundled with a principal supply. The applicant supplies accommodation together with food and other ancillary services for a consolidated charge and does not bill these items separately, satisfying the composite supply test with accommodation as the principal supply. Under Section 8, the tax rate applicable to the composite supply is the rate on the principal supply. Having classified hostel accommodation as taxable at an aggregate 18%, the same rate is to apply to the composite supply comprising accommodation and in house food. [Paras 7]In house food supplied to inmates as part of the consolidated service is a composite supply whose tax rate is that of the principal supply; the composite supply is taxable at the aggregate rate of 18% (9% CGST + 9% SGST).Whether a ruling could be issued on the fifth question contained in the application - HELD THAT: - The Authority examined the scope of Section 97(2) and found that the fifth question falls outside the matters on which advance rulings may be given under that provision. [Paras 7]No ruling issued on Question No.5 as it does not fall within the scope of Section 97(2) of the Act.Final Conclusion: The Authority ruled that the applicant's hostel accommodation does not qualify for exemption under the cited exemption entries; the applicant must register if turnover exceeds the statutory threshold; hostel accommodation is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST (18% aggregate); in house food provided as part of a composite supply attracts the same aggregate rate; and no ruling was possible on the fifth question as it lies outside the advance ruling jurisdiction.

Services by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification to be strictly interpreted - composite supply - principal supply - Tariff heading 9963 (Accommodation, food and beverage services) - registration threshold under Section 22Services by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification to be strictly interpreted - Whether the hostel accommodation provided by the applicant is exempt as 'services by way of renting of residential dwelling for use as residence'. - HELD THAT: - The Authority held that the term 'residential dwelling' is not defined under the GST Act or the notification and must be read in trade parlance. Hostels that provide boarding and lodging on a per bed basis together with ancillary services, are commercial accommodation rather than a residential dwelling occupied as a home. Regulatory licences, mandatory certificates and the commercial nature of letting (per bed, bundled services, lack of landlord tenant maintenance obligations) indicate a conversion of residential homes into commercial hostel premises. Exemption notifications must be strictly construed and the onus to show applicability lies on the applicant. Applying these principles, the twin conditions of 'renting of residential dwelling' and 'use as residence' are not satisfied; hence the exemption under Entry 12 of Notification No.12/2017 CT(Rate) (and corresponding entries) does not apply to the applicant's hostel services. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017 CT(Rate) (and the identical State/Central entries).Registration threshold under Section 22 - supply - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the hostel supply is a taxable supply in the course of business, the applicant is a supplier of services. In terms of the GST law, every supplier making taxable supplies is liable to be registered if aggregate turnover in a financial year exceeds the prescribed threshold. The Authority accordingly applied Section 22 and held that registration is required if the applicant's aggregate turnover exceeds twenty lakh rupees in a financial year. [Paras 7]The applicant must obtain registration in Tamil Nadu if aggregate turnover in a financial year exceeds Rs.20 lakh.Tariff heading 9963 (Accommodation, food and beverage services) - principal supply - Classification and rate applicable to the supply of hostel accommodation. - HELD THAT: - The Authority differentiated hostel accommodation from hotel accommodation and observed that hostel services are basic, longer term lodging with minimal staff and facilities. Accordingly, hostel accommodation falls under Heading 9963 (Accommodation, food and beverage services) and, within the rate notification, is covered by the entry for 'Accommodation, food and beverage services other than (i)-(v)'. The applicable tax rate is 9% CGST + 9% SGST (i.e., total 18%) under Sl. No.7(vi) of Notification No.11/2017 as amended. [Paras 7]Hostel accommodation is classifiable under Tariff heading 9963 and taxable at 9% CGST + 9% SGST (total 18%) under Sl. No.7(vi) of Notification No.11/2017 (as amended).Composite supply - principal supply - Whether in house food supplied to inmates is exempt as part of a composite exempt supply if accommodation were exempt. - HELD THAT: - The Authority found the applicant provides accommodation together with food and ancillary services for a consolidated charge and that these services are naturally bundled, making them a composite supply where accommodation is the principal supply. As the principal supply determines the tax treatment of a composite supply, and hostel accommodation is taxable (total 18%), the composite supply (including in house food) will bear the tax rate applicable to the principal supply. Therefore the bundled supply is taxable at the tax rate applicable to hostel accommodation. [Paras 7]In house food supplied as part of the bundled services is a composite supply; the tax rate of the principal supply (hostel accommodation) applies to the composite supply (i.e., total 18%).Admissibility / scope of question outside Section 97(2). - HELD THAT: - The Authority recorded that Question No.5 does not fall within the scope of Section 97(2) of the GST Act and therefore no advance ruling could be issued on that question. [Paras 6, 7]No ruling issued on Question No.5 as it is outside the scope of Section 97(2).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as 'renting of residential dwelling for use as residence'; the applicant must register under GST if aggregate turnover exceeds the prescribed threshold; hostel accommodation is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST (total 18%); bundled in house food forms a composite supply taxed at the rate of the principal supply; no ruling was issued on Question No.5 as it falls outside Section 97(2).

Services by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification should be interpreted strictly - composite supply - principal supply - liability to be registered where aggregate turnover exceeds threshold - tariff heading 9963 (Accommodation, food and beverage services)Services by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification should be interpreted strictly - Whether the hostel accommodation provided by the applicant qualifies as 'renting of residential dwelling for use as residence' and is therefore exempt under the cited exemption notifications. - HELD THAT: - The Authority found that the phrase 'residential dwelling' is not defined in the GST statute or the notification and that the expression under erstwhile guidance excludes places meant for temporary stay such as hotels, guest houses and similar accommodations. A residential dwelling, in common understanding, is where people reside treating it as a home and is typically let to a family or person for use as a residence without bundled amenities like food and housekeeping. The applicant's premises are let on a per-bed basis, with consolidated charges and ancillary services (food, housekeeping, security), licences and regulatory requirements applicable to hostels, and no landlord-tenant relationship or maintenance obligations typical of a residential tenancy. The premises therefore operate as a commercial hostel/boarding accommodation and not as a 'residential dwelling for use as residence'. Exemption notifications must be strictly construed and the twin conditions of 'renting of residential dwelling' and 'for use as residence' must both be satisfied; they are not met here. Consequently the services are not covered by the exemption entries relied upon by the applicant. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the cited entries of the exemption notifications.Liability to be registered where aggregate turnover exceeds threshold - supply - Whether the applicant is required to obtain registration under the GST law. - HELD THAT: - Having held that the applicant's activities constitute taxable supply of accommodation and related services in the course of business, the Authority applied the registration threshold rule. A supplier of services is liable to be registered in the State from which taxable supplies are made if aggregate turnover in a financial year exceeds the statutory threshold. The applicant's provision of hostel accommodation therefore attracts registration requirements once the aggregate turnover limit is crossed. [Paras 7]The applicant must obtain registration in Tamil Nadu if aggregate turnover in a financial year exceeds the prescribed threshold.Tariff heading 9963 (Accommodation, food and beverage services) - hotel accommodation versus hostel accommodation - The tariff classification and rate applicable to the applicant's hostel accommodation services. - HELD THAT: - The Authority distinguished hotel accommodation (short-term, hotel-like facilities) from hostels (longer-term, basic facilities). Applying Notification No.11/2017 (as amended), it held that hostel accommodation services fall under Heading 9963 for 'accommodation, food and beverage services' and, being not covered by the lower-rated hotel categories, are classifiable under the residual entry for accommodation services (Sl. No.7(vi) as amended). Accordingly, the Authority concluded the applicable tax rate for the hostel accommodation services as specified in that entry. [Paras 7]Supply of hostel accommodation services by the applicant is taxable under Tariff heading 9963 and falls under the residual accommodation entry in Notification No.11/2017.Composite supply - principal supply - Whether in-house food and other incidental services supplied to inmates form part of a composite supply with hostel accommodation and the tax rate applicable to such composite supply. - HELD THAT: - The Authority applied the statutory definition of 'composite supply' which requires multiple supplies naturally bundled with one being the principal supply. The applicant charges a consolidated price for accommodation together with food and ancillary services; accommodation is the principal supply. For composite supplies, the tax rate of the principal supply applies to the entire bundle. The Authority, while having classified and taxed accommodation under the tariff framework, recorded that where the supplies are composite and accommodation is the principal supply, the tax rate applicable to the principal supply governs the composite supply. [Paras 7]In-house food and other incidental services, when supplied in a composite manner with hostel accommodation (the principal supply), will attract the tax rate applicable to the principal supply.Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as 'renting of residential dwelling for use as residence'; the applicant must register under GST if turnover exceeds the threshold; hostel accommodation services are classifiable under Tariff heading 9963 and the applicable tax entry in the rate notification applies; and where food and ancillary services are supplied as a composite supply with accommodation as the principal supply, the tax rate of the principal supply governs the composite supply. No ruling was issued on the question outside the scope of Section 97(2).

Services by way of renting of residential dwelling for use as residence - Strict interpretation of exemption notifications - Hostel accommodation versus residential dwelling - Composite supply and principal supply - Liability to register under Section 22 for taxable supplies - Tariff heading 9963: accommodation services taxable under Sl. No. 7(vi) - Advance ruling binding effectServices by way of renting of residential dwelling for use as residence - Hostel accommodation versus residential dwelling - Strict interpretation of exemption notifications - Whether the hostel accommodation supplied by the applicant is eligible for exemption under Entry 12 of Notification No.12/2017-Central Tax (Rate) (and corresponding entries under State/Integrated notifications). - HELD THAT: - The Authority held that the phrase 'residential dwelling' is not defined in the GST enactment and must be understood in ordinary trade parlance as accommodation used as a home or abode. Hostels, which provide lodging to specific categories (students, workers) on a per bed basis together with bundled services (food, housekeeping, security) and regulatory licences specific to hostels, are commercial accommodation rather than residential dwellings. The conversion of a residential house into a hostel with per bed charges and ancillary services, absence of landlord tenant attributes (maintenance obligations, single family occupation), and the requirement of licences and certificates for hostels lead to the conclusion that such premises cease to be 'residential dwelling' for the purpose of the exemption. Exemption notifications must be construed strictly and the burden of proving applicability lies on the applicant; ambiguous or broad claims favour revenue. Reliance on decisions holding otherwise was noted but distinguished on facts or observed to be sub judice. On these grounds the Authority concluded the twin conditions of the exemption (renting of a residential dwelling and use as residence) are not satisfied in the applicant's case. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017 CT (Rate) (and the corresponding State/Integrated entries).Liability to register under Section 22 for taxable supplies - Supply as defined under Section 7 - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the hostel services are taxable supplies (transaction in furtherance of business), the Authority applied the registration threshold rule. A supplier making taxable supplies is liable to be registered in the State if aggregate turnover in a financial year exceeds the prescribed threshold. The Authority therefore concluded that the applicant must obtain registration in Tamil Nadu if the applicant's aggregate turnover in a financial year exceeds twenty lakh rupees. [Paras 7]The applicant is required to register under the GST Acts if aggregate turnover in a financial year exceeds Rs. twenty lakh.Tariff heading 9963: accommodation services taxable under Sl. No. 7(vi) - Hostel accommodation versus hotel accommodation - The classification and applicable GST rate for the supply of hostel accommodation. - HELD THAT: - The Authority distinguished hostels from hotels on the basis of nature and duration of stay, facilities and staffing. Hotels (temporary stay, more facilities) are treated differently; hostels are longer term, basic accommodation. Applying Notification No. 11/2017 (as amended), the Authority held hostel accommodation services fall under Heading 9963 and are taxable under Sl. No. 7(vi) of the Notification (accommodation, food and beverage services other than specified items). Consequently the applicable rate is 9% CGST + 9% SGST (i.e., the rate specified for Sl. No. 7(vi)). [Paras 7]Hostel accommodation services are classifiable under Tariff heading 9963 and taxable at 9% CGST + 9% SGST under Sl. No. 7(vi) of Notification No. 11/2017 (as amended).Composite supply and principal supply - Tax treatment of bundled accommodation and food services - Whether in house food supplied to hostel inmates is exempt when supplied along with accommodation, and the tax rate applicable to the composite supply. - HELD THAT: - The Authority applied the statutory definition of 'composite supply' and the rule that the tax rate of the principal supply governs the composite supply. The principal supply was held to be hostel accommodation; food and other services supplied together for a consolidated charge are naturally bundled and ancillary. Since hostel accommodation (the principal supply) is taxable, the composite supply will attract the tax rate applicable to the principal supply. The Authority determined the principal supply's applicable rate for composite supply computation. [Paras 7]In house food and other bundled services constitute a composite supply with hostel accommodation as the principal supply; the tax rate of the principal supply governs the composite supply.Admissibility of advance ruling under Section 97(2) - Admissibility of questions submitted for advance ruling. - HELD THAT: - The Authority considered the scope of Section 97(2) and recorded that out of the five questions filed, Questions 1 to 4 fall within the scope of Section 97(2)(a),(b) & (f) and are therefore admissible; the fifth question does not fall within Section 97(2) and no ruling was issued on it. [Paras 6, 7]Questions 1 to 4 are admissible for advance ruling; Question 5 is not within the scope of Section 97(2) and no ruling is issued on it.Final Conclusion: The Authority ruled that the applicant's hostel accommodation does not qualify as 'renting of residential dwelling for use as residence' and is not exempt under the cited notifications; the applicant must obtain GST registration if turnover exceeds the statutory threshold; hostel services are classifiable under Heading 9963 and taxable (9% CGST + 9% SGST under Sl. No. 7(vi)); in house food forms part of a composite supply governed by the principal supply's rate; one question was found inadmissible for advance ruling. Appeals lie to the State Appellate Authority within the prescribed period.

Services by way of renting of residential dwelling for use as residence - interpretation of "residential dwelling" - exemption notification should be interpreted strictly - supply - registration under Section 22 - Tariff heading 9963 (Accommodation, food and beverage services) - composite supply - principal supplyServices by way of renting of residential dwelling for use as residence - interpretation of "residential dwelling" - exemption notification should be interpreted strictly - Hostel accommodation supplied by the Applicant is not eligible for exemption under Entry 12 of Notification No. 12/2017-Central Tax (Rate) and the identical entries under the relevant State and Integrated Tax notifications. - HELD THAT: - The Authority noted that 'residential dwelling' is not defined in the statute and relied on ordinary trade parlance and prior administrative guidance to distinguish residential dwellings from temporary lodging like hostels. It found that the Applicant's business model-renting on a per-bed basis with bundled services (food, housekeeping, security), licences and certificates specific to hostels/public buildings, and absence of landlord-tenant features such as responsibility for maintenance-indicates commercial accommodation rather than a 'residential dwelling' let for use as a residence. Exemption notifications are to be strictly construed and the twin conditions of (i) renting of a residential dwelling and (ii) use as a place of residence must both be satisfied; they are not met here. Reliance on zoning or other non-determinative factors was rejected, and contrary case-law relied upon by the Applicant was held inapplicable or pending higher adjudication. Consequently, the exemption does not apply to the Applicant's hostel services. [Paras 7]Hostel accommodation supplied by the Applicant is not an exempt supply under the cited exemption entries.Supply - registration under Section 22 - The Applicant is required to obtain GST registration in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees. - HELD THAT: - Having held that the Applicant's activities constitute taxable supply of accommodation services in the course of business, the Authority applied the statutory registration threshold. The Applicant is therefore liable to register under the GST Acts if its aggregate turnover exceeds the prescribed limit in a financial year. [Paras 7]Applicant must register for GST in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 (Accommodation, food and beverage services) - principal supply - Hostel accommodation services supplied by the Applicant fall under Tariff heading 9963 and are taxable under the residual entry for accommodation services at the rate specified therein. - HELD THAT: - The Authority examined Notification No. 11/2017 Central Tax (Rate) and amendments and concluded that hostel services do not equate to hotel accommodation rates but fall under 'Accommodation, food and beverage services other than (i)-(v)'. Consequently, the supply is classifiable under Tariff heading 9963 and taxable at the rate applicable to that residual category, i.e., aggregate tax of 18% (9% CGST + 9% SGST). [Paras 7]Hostel accommodation falls under Tariff heading 9963 and is taxable at 9% CGST + 9% SGST (total 18%).Composite supply - principal supply - The in-house food and other services supplied along with accommodation constitute a composite supply; the tax rate of the principal supply (hostel accommodation) governs the composite supply. - HELD THAT: - Applying the definition of 'composite supply', the Authority found the Applicant provides accommodation together with ancillary services (food, housekeeping) as a single bundled service for a consolidated price. The principal element is accommodation; therefore, under Section 8 the tax rate of the principal supply applies to the composite supply. Given the classification of accommodation under Tariff heading 9963 and its taxability at aggregate 18%, the composite supply is subject to that rate. [Paras 7]In-house food and ancillary services form a composite supply; the composite supply is taxable at the rate applicable to the hostel accommodation (aggregate 18%).Question No. 5 does not fall within the scope of Section 97(2) and no ruling is issued on it. - HELD THAT: - The Authority recorded that the matter raised in Question No. 5 was outside the ambit of questions eligible for advance ruling under Section 97(2) and accordingly declined to render a ruling on that question. [Paras 7]No ruling issued on Question No. 5 as it is outside the scope of Section 97(2).Final Conclusion: The Authority ruled that the Applicant's hostel services are not exempt under the cited exemption entries, are taxable as accommodation services under Tariff heading 9963 at 9% CGST + 9% SGST (aggregate 18%), that incidental food and services form a composite supply taxed at the principal rate, that the Applicant must register if turnover exceeds the statutory threshold, and that no ruling is issued on Question No. 5 as it falls outside Section 97(2).

Services by way of renting of residential dwelling for use as residence - exemption notification interpreted strictly - composite supply - principal supply - taxable supply and requirement of registration - tariff heading 9963 (Accommodation, food and beverage services)Services by way of renting of residential dwelling for use as residence - exemption notification interpreted strictly - Hostel accommodation provided by the applicant does not qualify as 'residential dwelling for use as residence' and is not exempt under Entry 12 of Notification No.12/2017-CT(R) (and corresponding entries). - HELD THAT: - The Authority found that 'residential dwelling' is not defined in CGST Act or the notification and, by ordinary trade parlance and previous administrative guidance, denotes accommodation used as a home rather than commercial lodging. The applicant's premises are operated as hostels with per bed charges, bundled ancillary services (food, housekeeping, security), licences and regulatory approvals specific to hostels/public buildings, and a commercial mode of operation. Converting a dwelling into a commercial hostel with consolidated charges and absence of a landlord tenant maintenance relationship results in loss of the character of a 'residential dwelling'. Exemption notifications are to be strictly construed and the applicant has not established that both conditions of the entry (renting of a residential dwelling and use as residence) are satisfied; accordingly the exemption cannot be extended to the hostel services. [Paras 7]Services by way of providing hostel accommodation by the applicant are not eligible for exemption under the cited entries.Taxable supply and requirement of registration - The applicant's provision of hostel accommodation constitutes a supply in the course of furtherance of business and, if aggregate turnover in a financial year exceeds the statutory threshold, the applicant is required to register under the GST Acts. - HELD THAT: - Having held that the hostel service is not an exempt supply, the Authority treated the arrangement between the applicant and inmates as a supply under Section 7(1)(a) read with the Second Schedule. Consequently, the applicant is a supplier of services and must obtain GST registration in Tamil Nadu if aggregate turnover in a financial year exceeds the prescribed threshold of twenty lakh rupees. [Paras 7]The applicant is required to register under the GST Acts if aggregate turnover exceeds twenty lakh rupees in a financial year.Tariff heading 9963 (Accommodation, food and beverage services) - Hostel accommodation services supplied by the applicant fall under Tariff heading 9963 and attract tax at the rate specified for 'Accommodation, food and beverage services other than (i)-(v)' in Notification No.11/2017 as amended. - HELD THAT: - The Authority distinguished hostels from hotels on the basis of duration of stay, facilities and staffing, and held that hostel services cannot be equated to hotel accommodation. Accordingly, the supply falls under the residual sub heading for accommodation services within Heading 9963 and is taxable at the rate prescribed for such services under the relevant notification (i.e., 9% CGST + 9% SGST as per the entry governing accommodation services other than specified items). [Paras 7]Supply of hostel accommodation falls under Tariff heading 9963 and is taxable @ 9% CGST + 9% SGST under the cited notification entry.Composite supply - principal supply - Where hostel accommodation and in house food/ancillary services are supplied as a bundle for a consolidated price, the supply is a composite supply and the tax rate of the principal supply applies. - HELD THAT: - The Authority observed that the applicant provides accommodation together with food and other ancillary services for a single consolidated charge, constituting a natural bundle with accommodation as the principal supply. Under Section 2(30) and Section 8 of the CGST Act, a composite supply is taxed at the rate applicable to the principal supply; therefore the composite supply is taxable at the rate applicable to the principal supply (the Authority applied the rate for hostel accommodation services). [Paras 7]In house food supplied to inmates as part of bundled hostel services forms a composite supply and is taxed at the rate of the principal supply.Admissibility under Section 97(2) - Question No.5 in the application does not fall within the scope of Section 97(2) of the GST Act and no ruling is issued on that question. - HELD THAT: - The Authority determined admissibility of the application under Section 97(2) and concluded that only Questions 1-4 fall within the scope specified therein; Question 5 therefore lies outside the jurisdiction of the advance ruling authority under that provision and cannot be answered in this ruling. [Paras 7]No ruling issued on Question No.5 as it does not fall under Section 97(2).Final Conclusion: The Authority ruled that the applicant's hostel services are not exempt as 'renting of residential dwelling for use as residence'; the services are taxable supplies requiring registration if turnover exceeds the threshold, classified under Heading 9963 and taxable at the notified rates for accommodation services, bundled ancillary services form a composite supply taxed at the principal supply rate, and no ruling is given on the fifth question as it is outside Section 97(2).

Services by way of renting of residential dwelling for use as residence - exemption notification to be strictly interpreted - hostel accommodation as commercial accommodation not a residential dwelling - taxable supply and registration under Section 22 of the GST Acts - classification under Heading 9963 (Accommodation, food and beverage services) - composite supply and principal supply - applicable tax rate for hostel accommodation (9% CGST + 9% SGST)Services by way of renting of residential dwelling for use as residence - hostel accommodation as commercial accommodation not a residential dwelling - exemption notification to be strictly interpreted - Whether the hostel accommodation provided by the applicant is eligible for exemption under Entry 12 of Notification No.12/2017-CT (Rate) (and corresponding State/Integrated entries). - HELD THAT: - The Authority held that the phrase 'residential dwelling' is not defined in the GST statute and must be understood in common parlance and in the context of the exemption. Hostels, which provide lodging to specific categories (students, workers) with per-bed charges, ancillary services (food, housekeeping) and regulatory licences specific to hostels, are commercial accommodations akin to hotels rather than a residential dwelling let out as a home. The Authority observed that conversion of a residential home into a commercial hostel and the provision of bundled services for consideration removes the character of 'residential dwelling' for the purposes of the exemption. Exemption notifications must be strictly construed and the burden to show applicability lies on the assessee; the twin conditions of 'renting of residential dwelling' and 'for use as residence' must both be satisfied. On these grounds, the Authority concluded that the applicant's hostel accommodation does not qualify for the exemption under the cited entries. [Paras 7]The hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-CT (Rate) (and the corresponding State/Integrated entries).Taxable supply and registration under Section 22 of the GST Acts - Whether the applicant is required to obtain registration under the GST Acts. - HELD THAT: - Having found that the services supplied by the applicant are taxable supplies (being supplied in the course or furtherance of business), the Authority applied the statutory rule that a supplier making taxable supplies must register if aggregate turnover in a financial year exceeds the threshold. Therefore, the applicant must obtain registration in Tamil Nadu if its aggregate turnover in a financial year exceeds the prescribed limit under Section 22. [Paras 7]The applicant is required to register under the GST Acts if aggregate turnover in a financial year exceeds twenty lakh rupees.Classification under Heading 9963 (Accommodation, food and beverage services) - applicable tax rate for hostel accommodation (9% CGST + 9% SGST) - Tariff classification and applicable rate for the applicant's hostel accommodation services. - HELD THAT: - The Authority distinguished hostels from hotels on the basis of duration, facilities and commercial character. It placed hostel accommodation services under Tariff heading 9963 and, applying the entries in Notification No.11/2017 as amended, held that hostel accommodation falls within the residual entry for accommodation, food and beverage services other than specified items. Consequently, the applicable rate for the hostel accommodation services is 9% CGST + 9% SGST under the relevant entry for such accommodation services. [Paras 7]Hostel accommodation services fall under Tariff heading 9963 and are taxable at 9% CGST + 9% SGST.Composite supply and principal supply - applicable tax rate for hostel accommodation (9% CGST + 9% SGST) - If the supply of in-house food to inmates is incidental to hostel accommodation, whether the composite supply is exempt or the tax rate of the principal supply applies. - HELD THAT: - The Authority found that the applicant supplies accommodation together with food and other ancillary services for a single consolidated charge, thereby constituting a composite supply. Under Section 8, tax on a composite supply is that of the principal supply. As the principal supply is hostel accommodation and is taxable (and the Authority earlier concluded that the principal supply is taxable at the rate applicable to hostel accommodation), the tax rate of the principal supply governs the composite supply. The Authority specifically determined that the hostel accommodation is the principal supply and that the composite supply will attract the tax rate applicable to that principal supply. [Paras 7]The in-house food supplied as part of a bundled charge is a composite supply whose tax is determined by the principal supply (hostel accommodation).Scope of Section 97(2) - admissibility of advance ruling questions - Whether Question No.5 of the application falls within the scope of Section 97(2) of the GST Act and is amenable to an advance ruling. - HELD THAT: - The Authority examined admissibility and concluded that Questions 1 to 4 fall within Section 97(2) and are admissible, whereas Question 5 does not fall within the scope of Section 97(2). Consequently, the Authority did not issue any ruling on Question No.5. [Paras 6, 7]No ruling issued on Question No.5 as it does not fall within the scope of Section 97(2).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as 'renting of residential dwelling for use as residence'; the applicant must register if turnover exceeds the threshold; hostel accommodation is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; in-house food supplied as part of bundled charges is a composite supply taxed according to the principal supply; and no ruling is issued on Question No.5 as it is outside the advance-ruling jurisdiction.

Exemption notification - services by way of renting of residential dwelling for use as residence - residential dwelling versus hostel accommodation - taxability of accommodation services under heading 9963 - registration requirement under Section 22 - composite supply and principal supply rule - strict interpretation of tax exemptionExemption notification - services by way of renting of residential dwelling for use as residence - residential dwelling versus hostel accommodation - strict interpretation of tax exemption - Whether the hostel accommodation supplied by the applicant is exempt as 'services by way of renting of residential dwelling for use as residence'. - HELD THAT: - The Authority held that the phrase 'residential dwelling' is not defined in the statute or notification and must be construed in its ordinary commercial meaning; a residential dwelling is a place where people reside treating it as a home and typically includes facilities like kitchen and living spaces used by a family. Hostels provide lodging to a class of persons (students, workers), are subdivided and let on a per-bed basis, and are accompanied by bundled services (food, housekeeping) and regulatory licences applicable to commercial/public buildings. Such features transform the premises into a commercial accommodation rather than a 'residential dwelling'. Exemption notifications are to be strictly interpreted and the burden to prove entitlement lies on the applicant; where the twin conditions of 'renting of residential dwelling' and 'use as residence' are not satisfied, exemption cannot be granted. The Authority therefore concluded that the applicant's hostel accommodation does not qualify for the exemption under the cited entries. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-CT(Rate) and the corresponding entries under the TNGST/IGST notifications.Registration requirement under Section 22 - taxability of accommodation services under heading 9963 - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the hostel accommodation is a taxable supply (a business activity supplying accommodation and ancillary services), the Authority applied the registration threshold rule. A supplier of services making taxable supplies is required to be registered under Section 22 of the CGST Act if aggregate turnover in a financial year exceeds the statutory threshold (Rs. 20 lakh as noted by the Authority). The arrangement between the applicant and inmates was treated as supply in the course or furtherance of business. [Paras 7]The applicant must obtain registration in Tamil Nadu if its aggregate turnover in a financial year exceeds twenty lakh rupees.Taxability of accommodation services under heading 9963 - The tariff classification and rate applicable to the supply of hostel accommodation. - HELD THAT: - Distinguishing hostel services from hotel accommodation, the Authority observed that hostels are for longer-term stay with basic facilities and therefore fall under the residual entry for accommodation, food and beverage services. Accordingly, the supply of hostel accommodation is classifiable under Tariff heading 9963 and taxable under the residual entry in Notification No.11/2017 (as amended). The Authority held that such services attract the rate specified for 'Accommodation, food and beverage services other than (i)-(v)', resulting in tax at 9% CGST plus 9% SGST (18% total). [Paras 7]Supply of hostel accommodation falls under heading 9963 and is taxable at 9% CGST + 9% SGST under the applicable rate notification.Composite supply and principal supply rule - taxability of accommodation services under heading 9963 - Whether in-house food supplied to inmates is exempt where accommodation is exempt, or whether the combined supply is taxable as a composite supply and at what rate. - HELD THAT: - The Authority applied the definition of composite supply: where two or more supplies are naturally bundled and one is the principal supply. The applicant charged a consolidated price for accommodation together with food and ancillary services, and accommodation was the principal supply. Consequently, the tax rate of the principal supply applies to the composite supply. As the principal supply (hostel accommodation) is taxable at an aggregate rate of 18% (9% CGST + 9% SGST), that rate governs the composite supply. [Paras 7]In-house food supplied as part of the composite supply is taxable with the composite supply at the rate applicable to the principal supply (18% total: 9% CGST + 9% SGST).Admissibility of questions under Section 97(2) - Whether a ruling could be issued on Question No.5 of the application. - HELD THAT: - The Authority determined that Question No.5 did not fall within the scope of Section 97(2) of the CGST/TNGST Act and therefore was not admissible for an advance ruling. No adjudication on the merits of that question was undertaken. [Paras 6, 7]No ruling issued on Question No.5 as it is outside the scope of Section 97(2).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as 'renting of residential dwelling for use as residence'; the applicant must obtain GST registration if turnover exceeds the threshold; hostel accommodation is classifiable under heading 9963 and taxable at 9% CGST + 9% SGST; food supplied as part of the composite supply attracts the rate of the principal supply (18% total); and no ruling is issued on Question No.5 as it is outside the advance ruling jurisdiction.

Services by way of renting of residential dwelling for use as residence - exemption notification should be interpreted strictly - residential dwelling - hostel accommodation as supply of accommodation services under Heading 9963 - registration under the GST Act (Section 22) - composite supply - principal supplyServices by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification should be interpreted strictly - Whether hostel accommodation provided by the applicant is eligible for exemption under Entry 12 of Notification No.12/2017-CT (Rate) (and corresponding entries under TNGST/IGST notifications). - HELD THAT: - The Authority found that the term 'residential dwelling' is not defined in the GST enactment and must be understood in ordinary trade parlance as accommodation used as a home. Hostels provide lodging to specific categories (students, workers) on a per-bed/per-person basis with ancillary services (food, housekeeping) and licences/regulatory requirements that are not characteristic of a typical residential dwelling. The Authority observed that conversion of a residential home into a commercial hostel with bundled services removes its character as a 'residential dwelling'. Reliance on zoning or precedents in different factual matrices was rejected; exemption notifications must be strictly construed and the assessee bears the burden to show applicability. Applying these principles to the facts, both requisite conditions of the exemption (that the place be a 'residential dwelling' and be rented out 'for use as residence') were not satisfied. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-CT (Rate) (and the corresponding entries under the TNGST and IGST notifications).Taxable supply - registration under the GST Act (Section 22) - Whether the applicant is required to obtain GST registration for providing hostel accommodation. - HELD THAT: - Since the supply of hostel accommodation is not an exempt activity and constitutes a supply in the course or furtherance of business, the applicant is a supplier of services for GST purposes. Consequently, if the applicant's aggregate turnover in a financial year exceeds the statutory threshold, registration under the GST Acts is mandatory as per the registration provisions. [Paras 7]The applicant must obtain GST registration in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Hostel accommodation as supply of accommodation services under Heading 9963 - tariff heading - Classification and rate applicable to the supply of hostel accommodation by the applicant. - HELD THAT: - The Authority distinguished hostels from hotels and held that hostel accommodation is taxable under Heading 9963 (accommodation, food and beverage services). Applying Notification No.11/2017 (as amended), hostel accommodation falls under the residual entry for 'accommodation, food and beverage services other than (i)-(v)' and is therefore taxable at the rate specified there: 9% CGST and 9% SGST (i.e., aggregate 18%). [Paras 7]Hostel accommodation services supplied by the applicant fall under Tariff heading 9963 and are taxable at 9% CGST + 9% SGST under the relevant rate notification.Composite supply - principal supply - Whether in-house food supplied to inmates is exempt when provided along with hostel accommodation, i.e., whether the combined supply is an exempt composite supply. - HELD THAT: - The Authority applied the statutory definition of composite supply: where multiple supplies are naturally bundled and one is the principal supply. The applicant provides accommodation along with ancillary services (food, housekeeping) for a single consolidated charge. The principal supply is the hostel accommodation. Therefore the composite supply takes the tax rate of the principal supply. As hostel accommodation (principal supply) is taxable at aggregate 18% (9% CGST + 9% SGST), the composite supply inclusive of in-house food is taxable at that rate. [Paras 7]In-house food supplied as part of the consolidated hostel services forms a composite supply; the tax rate of the principal supply (hostel accommodation) applies to the composite supply (aggregate 18%).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt under the specified exemption entries, the applicant must register under GST if turnover exceeds the threshold, the services classify under Heading 9963 and are taxable at 9% CGST + 9% SGST, and that in-house food supplied as part of bundled hostel services forms a composite supply taxed at the rate applicable to the principal supply.

Services by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification to be strictly interpreted - supply and registration under Section 22 - tariff heading 9963 (Accommodation services) - composite supply - principal supplyServices by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification to be strictly interpreted - Whether the hostel accommodation provided by the applicant qualifies as 'residential dwelling for use as residence' and is therefore exempt under the specified exemption notifications. - HELD THAT: - The Authority observed that 'residential dwelling' is not defined in the GST enactments but, as understood in trade parlance and prior administrative guidance, denotes accommodation used as a home where people reside treating it as their abode and not places meant for temporary or commercial lodging. The applicant's premises are operated as hostels with per bed charges, bundled services (food, housekeeping etc.), regulatory licences specific to hostels/public buildings and commercial characteristics such as lack of landlord-tenant maintenance obligations. Converting a dwelling into a commercial hostel with bundled services results in loss of the character of a 'residential dwelling'. Exemption notifications must be construed strictly and the applicant bears the burden of showing entitlement. In the factual matrix, both conditions of the entry-(i) renting of a residential dwelling and (ii) use as residence-are not satisfied; consequently the exemption does not apply to the applicant's hostel services. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-Central Tax (Rate) and the corresponding entries under the TNGST/Integrated tax notifications.Supply and registration under Section 22 - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the hostel accommodation constitutes a taxable supply (a business transaction in furtherance of business), the Authority applied the statutory registration threshold. A supplier of services whose aggregate turnover in a financial year exceeds the prescribed threshold is liable to register. On the facts, the arrangement between the applicant and inmates constitutes supply; accordingly, registration is required if aggregate turnover exceeds the statutory limit. [Paras 7]The applicant is required to obtain GST registration in Tamil Nadu if its aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 (Accommodation services) - The correct tariff heading and rate applicable to the supply of hostel accommodation provided by the applicant. - HELD THAT: - The Authority distinguished hostel accommodation from hotel accommodation and held that hostels, providing longer term basic lodging with minimal staff, fall under the residual accommodation entry. Applying Notification No. 11/2017 (as amended), the supply by way of hostel accommodation is classifiable under Heading 9963 and attracts the rate specified for 'Accommodation, food and beverage services other than (i)-(v)' i.e., taxable at the composite rate applicable to that entry. [Paras 7]Hostel accommodation services fall under Tariff heading 9963 and are taxable at 9% CGST + 9% SGST under the specified entry (Sl. No. 7(vi) of Notification No.11/2017 as amended).Composite supply - principal supply - Whether in house food and ancillary services bundled with accommodation form a composite supply and, if so, the tax rate applicable to the composite supply. - HELD THAT: - The Authority applied the statutory definition of composite supply and the rule that the rate applicable to the principal supply governs the composite supply. The applicant charges a single consolidated amount for accommodation together with food and other ancillary services; accommodation is the principal element. Therefore the tax rate of the principal supply governs the composite supply. The Authority concluded that the composite supply will attract the tax rate applicable to the principal supply. [Paras 7]In house food and other ancillary services bundled with hostel accommodation form a composite supply; the tax rate of the principal supply (hostel accommodation) applies to the composite supply (held to be taxable at the rate fixed for the principal supply).Admissibility of one of the questions raised by the applicant (Question No.5). - HELD THAT: - The Authority found that the question framed as Question No.5 does not fall within the scope of Section 97(2) of the GST Act and therefore no advance ruling could be issued on that question. [Paras 7]No ruling issued in respect of Question No.5 as it is outside the scope of Section 97(2).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not an exempt 'residential dwelling for use as residence' and is therefore taxable; the applicant must register if turnover exceeds the threshold; hostel accommodation is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST, composite supplies (including in house food) are taxable at the rate of the principal supply, and no ruling is issued on Question No.5 as it falls outside Section 97(2).

Hostel accommodation does not qualify as "residential dwelling" for the purpose of exemption - services by way of renting of residential dwelling for use as residence (exemption entry) - exemption notification to be interpreted strictly - registration requirement where aggregate turnover exceeds the threshold under Section 22 - tariff classification of hostel accommodation under Heading 9963 - composite supply and principal supply determines tax rateHostel accommodation does not qualify as "residential dwelling" for the purpose of exemption - services by way of renting of residential dwelling for use as residence (exemption entry) - exemption notification to be interpreted strictly - Services by way of providing hostel accommodation supplied by the Applicant are not eligible for exemption under the Entry relating to renting of residential dwelling for use as residence. - HELD THAT: - The Authority held that the phrase "residential dwelling" is not defined in the GST statute or notification and must be construed in ordinary trade parlance. Renting of residential dwelling ordinarily means letting a house or part thereof for use as a home by a person or family without bundled amenities like food or housekeeping. The Applicant's hostel lets beds on a per bed basis, provides bundled services (food, housekeeping, security), is subject to licences and regulatory conditions applicable to public/commercial buildings and operates as a commercial accommodation business. These features distinguish it from a residential dwelling let for use as a residence. Exemption notifications are to be strictly construed and the twin conditions of the entry (being a residential dwelling and being for use as residence) must both be satisfied; they are not met here. Reliance on zoning or other authorities permitting hostels in residential zones does not change the character for the purpose of the exemption. Accordingly, the hostel accommodation does not fall within the exempt entry and the exemption is not available. [Paras 7]Hostel accommodation supplied by the Applicant is not exempt under the entry for renting of residential dwelling for use as residence.Registration requirement where aggregate turnover exceeds the threshold under Section 22 - supply in course of furtherance of business - Whether the Applicant is required to obtain registration under the GST Acts. - HELD THAT: - Since the supply of hostel accommodation is a supply in the course of furtherance of business and not an exempt supply, the Applicant is a supplier of taxable services. Accordingly, the Applicant must obtain registration in Tamil Nadu if the aggregate turnover in a financial year exceeds the statutory threshold of twenty lakh rupees. [Paras 7]The Applicant is required to register in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff classification of hostel accommodation under Heading 9963 - hotel/hostel distinction for rate application - Tariff heading and rate of taxability of the Applicant's hostel accommodation services. - HELD THAT: - The Authority differentiated hotels (temporary stays with extensive facilities) from hostels (longer stays with basic facilities). Hostels are classifiable under Heading 9963 as accommodation services and, within the rate notification schedule, fall under the entry for "Accommodation, food and beverage services other than (i)-(v)" (Sl. No. 7(vi) of Notification No. 11/2017 as amended). Applying the notification, supply of hostel accommodation is taxable at the rate specified for that entry, i.e., 9% CGST + 9% SGST (total 18%). [Paras 7]Hostel accommodation services fall under Heading 9963 and are taxable at 9% CGST + 9% SGST under the specified entry.Composite supply and principal supply determines tax rate - principal supply is hostel accommodation - Whether in house food supplied to inmates is exempt when bundled with hostel accommodation and the tax rate applicable to such composite supply. - HELD THAT: - The Authority found that the Applicant supplies accommodation together with ancillary services (food, housekeeping etc.) for a single consolidated charge, which satisfies the definition of a composite supply. The principal supply in the bundle is the accommodation service. Under the statutory rule, the tax rate of the principal supply governs the composite supply. Since the principal supply (hostel accommodation) is taxable at a total of 18% (9% CGST + 9% SGST), the composite supply comprising in house food and accommodation attracts the tax rate applicable to the principal supply. [Paras 7]In house food supplied as part of a composite supply with hostel accommodation is taxed at the rate of the principal supply (total 18%).Advance ruling admissibility under Section 97(2) - Whether a ruling may be issued on Question No. 5 of the application. - HELD THAT: - The Authority examined admissibility and held that Questions 1-4 fall within the scope of Section 97(2) and are admissible. Question No. 5 does not fall within the scope of Section 97(2) and therefore no ruling is issued on that question. [Paras 6, 7]No ruling issued on Question No. 5 as it is not within the scope of Section 97(2).Final Conclusion: The Authority ruled that the Applicant's hostel accommodation is not an exempt supply under the entry for renting of residential dwelling for use as residence; the Applicant must register if turnover exceeds the statutory threshold; hostel accommodation is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; in house food supplied as part of a composite supply is taxable at the rate of the principal supply; and no ruling is issued on Question 5 as it falls outside the scope of the advance ruling provisions.

Services by way of renting of residential dwelling for use as residence - residential dwelling - composite supply - principal supply - registration under Section 22 - tariff heading 9963 - strict interpretation of exemption notification - taxability of hostel accommodationServices by way of renting of residential dwelling for use as residence - residential dwelling - strict interpretation of exemption notification - Whether the hostel accommodation provided by the applicant is exempt as 'services by way of renting of residential dwelling for use as residence'. - HELD THAT: - The Authority held that the expression 'residential dwelling' is not defined in the statute but, on ordinary trade parlance and pre GST administrative guidance, denotes accommodation used as a home by persons/families and excludes hotels, guest houses and similar temporary stay commercial places. The applicant's premises, being subdivided and let on a per bed basis with bundled services (food, housekeeping, security etc.), licensed/regulated as hostels and operated as a commercial/public building, do not retain the character of a residential dwelling used as a residence. Exemption notifications must be strictly construed and the twin conditions of (i) renting of a residential dwelling and (ii) use as residence must both be satisfied; they are not met on the facts. Reliance on decisions for different factual matrices or pending contrary orders before higher courts was noted but did not alter the conclusion. Consequently the hostel accommodation is not eligible for the exemption under the cited entries of Notification No.12/2017-CT(R) and the corresponding State/Central entries. [Paras 7]Hostel accommodation supplied by the applicant is not exempt under Entry No.12 of Notification No.12/2017-CT(R) (and corresponding State/Central entries) as it does not qualify as renting of a 'residential dwelling for use as residence'.Registration under Section 22 - taxability of hostel accommodation - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the supply of hostel accommodation is a taxable supply (and not an exempt supply), the arrangement between the applicant and inmates constitutes a supply in the course or furtherance of business. Therefore, if the applicant's aggregate turnover in a financial year exceeds the statutory threshold, the applicant is required to obtain registration under Section 22 of the GST Act. [Paras 7]The applicant must register under the GST Acts if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 - taxability of hostel accommodation - The applicable tariff heading and rate for the supply of hostel accommodation by the applicant. - HELD THAT: - The Authority examined the entries in Notification No.11/2017 (as amended). It distinguished hotels (short term, higher service hotels) from hostels (longer term, basic facilities). On that basis it classified the applicant's supply under Heading 9963 (Accommodation, food and beverage services) and, specifically, under the entry for 'Accommodation, food and beverage services other than (i) to (v)' in Sl. No. 7(vi) of the Notification. Accordingly, the Authority held that the supply is taxable at the rate applicable to that entry, i.e., 9% CGST + 9% SGST (as stated in the ruling). [Paras 7]Supply of hostel accommodation falls under Tariff heading 9963 and is taxable at 9% CGST + 9% SGST under Sl. No.7(vi) of Notification No.11/2017 (as amended).Composite supply - principal supply - Whether in house food supplied to hostel inmates forms part of a composite supply with accommodation and, if so, the tax rate applicable to the composite supply. - HELD THAT: - The Authority found that the applicant supplies accommodation together with ancillary services (food, housekeeping etc.) for a single consolidated charge. These elements are naturally bundled and the accommodation is the principal supply. Under Section 8, the tax rate of the principal supply applies to a composite supply. The Authority therefore concluded that the composite supply will attract the tax rate applicable to the principal supply. The Authority's analysis in the body at one place treats the principal supply rate as 18% for composite supply purposes, and the final ruling records that the principal supply is taxable at 18% for the composite supply; this is reflected in the ruling delivered on Question No.4. [Paras 7]In house food and other services form a composite supply with accommodation; the tax rate of the principal supply governs the composite supply (as stated in the ruling for Question No.4).Scope of advance ruling under Section 97(2) - Whether a ruling could be given on Question No.5 as framed by the applicant. - HELD THAT: - The Authority examined admissibility under Section 97(2) and found that Question No.5 does not fall within the matters on which an advance ruling may be sought. Consequently, no ruling was issued on that question. [Paras 6, 7]No ruling issued for Question No.5 as it does not fall within the scope of Section 97(2) of the GST Act.Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as renting of a residential dwelling and, if turnover exceeds the threshold, the applicant must register; the supply is classified under Heading 9963 and (per the ruling) taxable at the rates indicated for hostel accommodation, composite supplies of in house food are treated with the principal supply rule, and no advance ruling was possible on Question No.5.

Services by way of renting of residential dwelling for use as residence - residential dwelling - composite supply - principal supply - registration threshold under Section 22 - tariff heading 9963 (Accommodation, food and beverage services) - interpretation of exemption notifications (strict rule) - admissibility under Section 97(2)Services by way of renting of residential dwelling for use as residence - residential dwelling - interpretation of exemption notifications (strict rule) - Whether the hostel accommodation supplied by the applicant is exempt as 'services by way of renting of residential dwelling for use as residence'. - HELD THAT: - The Authority found that 'residential dwelling' is not defined in the CGST Act or the notification and must be understood in ordinary commercial parlance as accommodation used as a home. Hostels provide lodging to specific categories (students, workers) on a per-bed basis with bundled services (food, housekeeping), licences and regulatory approvals applicable to public/commercial buildings, and operate as a commercial accommodation business rather than a dwelling let as a residence. The Authority emphasized that exemption notifications must be strictly construed and the burden to show entitlement lies on the applicant. Having regard to these factors, the Authority concluded that the premises and the manner of letting do not qualify as 'residential dwelling' let for use as residence and therefore the hostel accommodation is not covered by the exemption entry. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-CT(Rate) and the corresponding entries under the State/Integrated notifications.Registration threshold under Section 22 - supply - Whether the applicant is required to obtain GST registration. - HELD THAT: - Since the supply of hostel accommodation is not an exempt supply and constitutes a supply in the course or furtherance of business, the applicant is a supplier of services. Under Section 22, a supplier making taxable supplies is liable to register in the State if aggregate turnover in a financial year exceeds the statutory threshold of twenty lakh rupees. [Paras 7]The applicant must obtain registration in Tamil Nadu if its aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 (Accommodation, food and beverage services) - principal supply - The tariff classification and rate applicable to the supply of hostel accommodation. - HELD THAT: - The Authority examined the entries in Notification No.11/2017 (as amended) for Heading 9963. Distinguishing hotels (temporary stays with extensive facilities) from hostels (longer stays with basic facilities), it held that hostel accommodation falls within Heading 9963 and specifically under the category 'Accommodation, food and beverage services other than (i) to (v)' (Sl. No.7(vi)). The applicable rate under that entry is 9% CGST and 9% SGST (total 18%). [Paras 7]Hostel accommodation services are classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST (total 18%).Composite supply - principal supply - Whether in-house food supplied to inmates is exempt as part of a composite exempt supply, and the taxation of the bundled services. - HELD THAT: - The Authority applied the statutory definition of 'composite supply' and observed that the applicant supplies accommodation together with ancillary services (food, housekeeping) for a single consolidated charge. Accommodation is the principal supply; therefore, the tax rate of the principal supply governs the composite supply. As hostel accommodation is taxable (not exempt), the composite supply is taxable at the rate applicable to the principal supply. [Paras 7]In-house food and other bundled services form a composite supply with hostel accommodation as the principal supply and are taxable at the rate applicable to the principal supply (total 18%).Admissibility under Section 97(2) - Whether a ruling could be issued on the fifth question posed by the applicant. - HELD THAT: - The Authority determined that Question No.5 did not fall within the scope of Section 97(2) of the CGST/TNGST Act and therefore could not be the subject of an advance ruling under the provisions governing admissibility. [Paras 6, 7]No ruling is issued on Question No.5 as it is not within the scope of Section 97(2).Final Conclusion: The Advance Ruling holds that the applicant's hostel accommodation is not an exempt 'residential dwelling' let for use as residence; the applicant must register if turnover exceeds the threshold; hostel services are classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST (total 18%); bundled in-house food forms part of a composite supply taxed at the rate of the principal supply; and no ruling is issued on Question 5 as it is outside the scope of admissible questions.

Services by way of renting of residential dwelling for use as residence - residential dwelling - strict interpretation of exemption notification - registration under Section 22 - Tariff heading 9963 - composite supply - principal supply - scope of Section 97(2)Services by way of renting of residential dwelling for use as residence - residential dwelling - strict interpretation of exemption notification - Hostel accommodation supplied by the applicant does not qualify as 'residential dwelling for use as residence' for the purpose of Entry 12 of Notification No. 12/2017-CT (Rate) (and corresponding entries) and is not eligible for exemption. - HELD THAT: - The term 'residential dwelling' is not defined in the statute but, as understood in trade parlance and prior administrative guidance, denotes accommodation used as a home where people reside treating it as a family abode and does not include hotels, guest houses or similar temporary lodging. The applicant's hostel provides per-bed charges, bundled services (food, housekeeping, security, etc.), is run under statutory licences applicable to public/commercial buildings and operates as a commercial supply of accommodation rather than letting of a residential dwelling to a person/family. Conversion of a residential house into a commercial hostel providing bundled services removes its character as a residential dwelling. Exemption notifications are to be strictly construed and the twin conditions (renting of a residential dwelling; use as residence) must both be satisfied; they are not met here. Reliance on zoning permissions or certain judicial decisions was found to be inapposite on the facts and/or pending higher adjudication. Consequently, the exemption entry does not apply to the applicant's supplies. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the cited entries of the exemption notifications.Registration under Section 22 - Whether the applicant is required to obtain GST registration. - HELD THAT: - Since the applicant's supply of hostel accommodation is a supply of services in the course of business and not an exempt supply under the considered exemption entry, the applicant is a supplier of taxable services. Under the registration provisions, a supplier of taxable services must obtain registration if aggregate turnover in a financial year exceeds the prescribed threshold. [Paras 7]The applicant must register in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 - rate 9% CGST + 9% SGST - Tariff classification and rate applicable to the applicant's hostel accommodation services. - HELD THAT: - Hostel accommodation services fall within Tariff heading 9963 (Accommodation, food and beverage services). Given the differentiation between hotel accommodation (temporary, higher service intensity) and hostel accommodation (longer stay, basic facilities), the applicant's hostel services are classified under the entry for 'Accommodation, food and beverage services other than (i)-(v)' and attract the rate specified for that entry. [Paras 7]Hostel accommodation services fall under Tariff heading 9963 and are taxable at 9% CGST + 9% SGST under the cited notification entry.Composite supply - principal supply - Whether in-house food supplied to hostel inmates forms part of an exempt composite supply and the tax rate applicable to such composite supply. - HELD THAT: - The services provided by the applicant (accommodation with bundled food and other services) constitute a composite supply where accommodation is the principal supply and other services are ancillary and naturally bundled, billed as a single price. For composite supplies, the tax rate of the principal supply applies to the entire composite. As the principal supply (hostel accommodation) is taxable at the rate determined for Tariff heading 9963 (total 18% as 9% CGST + 9% SGST), that rate governs the composite supply. [Paras 7]In-house food and other bundled services form a composite supply with hostel accommodation as the principal supply; the composite supply is taxable at the rate applicable to the principal supply (total 18% CGST+SGST as determined).Scope of Section 97(2) - Ruling on the fifth question posed by the applicant. - HELD THAT: - The Authority has considered whether the question falls within the matters on which an advance ruling can be given under the statutory provision. The fifth question as framed by the applicant does not fall within the scope of the provision enabling advance ruling. [Paras 7]No ruling is issued on Question No. 5 as it does not fall under the scope of Section 97(2).Final Conclusion: The Authority rules that the applicant's hostel accommodation is not an exempt 'residential dwelling' under the cited exemption entries; the applicant must obtain GST registration if turnover exceeds the threshold; the services classify under Tariff heading 9963 and are taxable at 9% CGST + 9% SGST (total 18%); in-house food forms part of a composite supply taxed at the principal supply rate; and no ruling is given on the fifth question as it falls outside the advance-ruling jurisdiction.

Services by way of renting of residential dwelling for use as residence - exemption notification to be interpreted strictly - residential dwelling versus hostel accommodation - registration under Section 22 of the CGST Act - tariff heading 9963 (accommodation services) - composite supply - principal supplyServices by way of renting of residential dwelling for use as residence - residential dwelling versus hostel accommodation - exemption notification to be interpreted strictly - Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-Central Tax (Rate) (and corresponding State/Integrated entries). - HELD THAT: - The term 'residential dwelling' is not defined in the Act or the notification; earlier administrative guidance under service tax distinguished residential dwelling from hotels, guest houses and similar temporary-stay places. A residential dwelling, in common understanding, is a place treated as a home where a family/person resides and which does not typically include bundled amenities such as food and housekeeping. The applicant lets accommodation on a per bed basis with consolidated charges and ancillary services, operates under licences and certificates specific to hostels/public buildings, and the premises are run as a commercial/hostel establishment rather than as a residential dwelling occupied as a home. Zoning permissibility or regulatory licences do not by themselves convert a hostel into a residential dwelling for the purpose of the exemption. Exemption notifications must be strictly construed and the assesse bears the burden of showing entitlement. Applying these principles, the Authority finds that the twin conditions of the exemption - (i) renting of a 'residential dwelling' and (ii) use 'as residence' - are not satisfied by the applicant's hostel services; hence the exemption does not apply. [Paras 7]Hostel accommodation supplied by the applicant is not exempt under the cited exemption entries.Registration under Section 22 of the CGST Act - supply in the course or furtherance of business - Applicant is required to obtain GST registration if aggregate turnover in a financial year exceeds the prescribed threshold. - HELD THAT: - Since the supply of hostel accommodation constitutes a 'supply' in the course or furtherance of business (receipt of consideration for accommodation and ancillary services), the applicant is a supplier of taxable services. Consequently, the registration requirement under Section 22 applies when aggregate turnover in a financial year exceeds the statutory threshold; the Authority therefore holds that the applicant must register in Tamil Nadu if that turnover threshold is crossed. [Paras 7]Registration is required if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 (accommodation services) - tariff classification and rate for hostel accommodation - Supply of hostel accommodation by the applicant falls under Tariff heading 9963 and is taxable at the rate specified for accommodation, i.e., 9% CGST + 9% SGST (total 18%) under Notification No.11/2017 as amended (Sl. No.7(vi)). - HELD THAT: - Hostels provide accommodation services distinct from hotel accommodation and are to be classified under Heading 9963 (Accommodation, food and beverage services). In view of the notification entries and the nature of hostel services, the Authority holds that such services fall under the residual entry for accommodation, food and beverage services other than specified sub items and attract the rate applicable thereunder. The Authority therefore applies the rate as per the amended notification entries to the applicant's hostel accommodation. [Paras 7]Hostel accommodation is classifiable under Heading 9963 and taxable @9% CGST + 9% SGST (total 18%) under the specified notification entry.Composite supply - principal supply - Supply of in house food and other services bundled with hostel accommodation constitutes a composite supply whose tax rate is that of the principal supply (hostel accommodation) - i.e., taxable at the principal supply rate (total 18%). - HELD THAT: - Where multiple supplies are naturally bundled and supplied in conjunction with one another for a single price, the transaction is a composite supply and the tax rate of the principal supply governs. The applicant supplies accommodation as the principal service together with food and ancillary services for a consolidated charge; they do not levy separate charges for ancillary services. Therefore the composite supply takes the tax rate of the principal supply. As the principal supply (hostel accommodation) is taxable at 18% (9% CGST + 9% SGST), the composite supply is taxable at that rate. [Paras 7]In house food and ancillary services supplied with hostel accommodation form a composite supply taxable at the rate of the principal supply (total 18%).Admissibility under Section 97(2) - Question No.5 in the application is not within the scope of Section 97(2) of the GST Act and no ruling is issued on that question. - HELD THAT: - The Authority examined the admissibility of the questions under Section 97(2) and determined that Questions 1-4 were admissible whereas Question 5 did not fall within the ambit of matters on which advance ruling can be sought under the provision. Consequently, the Authority declines to rule on Question 5. [Paras 6, 7]No ruling on Question No.5 as it is outside the scope of Section 97(2).Final Conclusion: The Authority rules that the applicant's hostel accommodation is not exempt under the cited exemption entries; the applicant must register if turnover exceeds the statutory threshold; the services are classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST (total 18%); in house food and allied services form a composite supply taxed at the principal supply rate; and no ruling is given on Question No.5 as it is outside the advance ruling scope.

Services by way of renting of residential dwelling for use as residence - residential dwelling - composite supply - principal supply - registration under Section 22 - Tariff Heading 9963 (Accommodation, food and beverage services) - strict interpretation of exemption notificationServices by way of renting of residential dwelling for use as residence - residential dwelling - strict interpretation of exemption notification - Hostel accommodation provided by the applicant is not eligible for exemption under Entry 12 of Notification No. 12/2017-C.T. (Rate) (and corresponding State/Integrated entries). - HELD THAT: - The term 'residential dwelling' is not defined in the GST enactments but, by reference to trade parlance and prior administrative guidance, denotes accommodation used as a home and not commercial lodging such as hotels, inns or similar temporary-stay places. Renting of residential dwelling ordinarily involves letting a house or part thereof for use as a residence by a person or family and does not include bundled services such as food and housekeeping. The applicant's premises are let on a per-bed basis with bundled services, licences and regulatory permissions applicable to hostels, and operate as commercial accommodation rather than as a residential dwelling used as a home. Hostels provide temporary lodging to specific categories (students, workers) and, when run as commercial/commercialised hostels with ancillary services and licences, lose the character of 'residential dwelling'. Exemption notifications must be interpreted strictly and the applicant has not satisfied the twin conditions of (i) renting of a residential dwelling and (ii) use as a residence; hence the exemption does not apply to the applicant's hostel services. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the cited entries of the exemption notifications.Registration under Section 22 - supply - aggregate turnover threshold - The applicant is required to obtain GST registration if aggregate turnover in a financial year exceeds the threshold specified in the GST Acts. - HELD THAT: - Having held that the applicant's activities constitute taxable supply of services (in the course of business and for consideration), the applicant falls within the definition of supplier under the GST Acts. Accordingly, in terms of the registration provision, the applicant must register in the State of Tamil Nadu if its aggregate turnover in a financial year exceeds the statutory threshold (Rs. twenty lakh as stated in the ruling). The finding follows from the classification of the activity as a taxable supply and the statutory registration requirement for suppliers exceeding the turnover threshold. [Paras 7]The applicant must obtain GST registration in Tamil Nadu if its aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff Heading 9963 (Accommodation, food and beverage services) - hostel accommodation - Hostel accommodation services supplied by the applicant are classifiable under Tariff Heading 9963 and taxable at 9% CGST + 9% SGST under Sl. No. 7(vi) of Notification No. 11/2017-C.T. (Rate), as amended. - HELD THAT: - Hotels and hostels are distinct: hotels are temporary-stay commercial establishments with extensive facilities, whereas hostels provide longer-term basic accommodation. Given this distinction, hostel accommodation cannot be equated to hotel accommodation for the purpose of applying hotel rates. The appropriate classification for the applicant's services is under Heading 9963 (Accommodation, food and beverage services), and as per the Notification provisions, such accommodation (other than items specifically enumerated at (i)-(v)) falls under Sl. No. 7(vi) attracting the stated rates. Therefore, the taxable rate is 9% CGST and 9% SGST on the hostel accommodation services. [Paras 7]Supply of hostel accommodation by the applicant is taxable under Tariff Heading 9963 at 9% CGST + 9% SGST under Sl. No. 7(vi) of Notification No. 11/2017-C.T. (Rate), as amended.Composite supply - principal supply - Where the applicant supplies accommodation together with in-house food and ancillary services for a consolidated charge, the supply is a composite supply and the tax rate of the principal supply applies to the composite supply. - HELD THAT: - A composite supply arises when two or more taxable supplies are naturally bundled and supplied in conjunction with each other and one of them is the principal supply. The applicant charges a consolidated amount for accommodation with food and other services, and accommodation is the principal service. Under Section 8 of the CGST Act, the tax rate applicable to the principal supply governs the composite supply. Since hostel accommodation (the principal supply) is taxable at the rate applicable to Heading 9963, the composite supply's tax incidence will follow the rate for the principal supply. The authority specifically concludes that, for the applicant, the composite supply takes the tax rate applicable to the principal supply as determined. [Paras 7]In-house food and related services supplied along with hostel accommodation as a consolidated service form a composite supply and attract the tax rate of the principal supply.Final Conclusion: The Authority rules that the applicant's hostel services are not exempt as 'renting of residential dwelling for use as residence'; the applicant must register for GST if aggregate turnover exceeds the statutory threshold; the services are classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; and bundled in-house food forms part of a composite supply taxed at the rate of the principal supply. No ruling is issued on the question falling outside Section 97(2).

Services by way of renting of residential dwelling for use as residence (exemption notification) - Concept of "residential dwelling" versus commercial/hostel accommodation - Composite supply and principal supply rule - Registration liability under Section 22 for suppliers of taxable supplies - Classification under tariff heading 9963 (Accommodation, food and beverage services) - Tax rate applicable to hostel accommodation/composite suppliesServices by way of renting of residential dwelling for use as residence (exemption notification) - Concept of "residential dwelling" versus commercial/hostel accommodation - Hostel accommodation provided by the applicant does not qualify as 'residential dwelling for use as residence' and is not eligible for exemption under the cited exemption notifications. - HELD THAT: - The Authority noted that 'residential dwelling' is not defined in the GST enactment but, by reference to prior administrative guidance and ordinary parlance, denotes accommodation used as a home by persons/families and not commercial lodging. Hostels supply bundled services (per-bed charges, food, housekeeping etc.), are regulated by specific licensing regimes and obtain trade/public-building licences which distinguish them from typical residential dwellings. A single house subdivided and let out per bed with ancillary services becomes a commercial supply of accommodation; consequently the premises cease to retain the character of 'residential dwelling'. Exemption notifications are to be strictly construed and the twin conditions of (i) renting of a residential dwelling and (ii) use as residence must both be satisfied; they are not met on the facts. Reliance on contrary High Court decision was noted to be sub judice before the Supreme Court and therefore not dispositive. The Authority therefore held the applicant's supply is not covered by the exemption entries relied upon. [Paras 7]The services supplied by the applicant as hostel accommodation are not eligible for exemption under Entry 12 of Notification No. 12/2017 CT (Rate) and the corresponding entries under the TNGST/IT notifications.Registration liability under Section 22 for suppliers of taxable supplies - Whether the applicant is required to obtain registration under the GST Acts. - HELD THAT: - Since the hostel accommodation is not an exempt service and constitutes 'supply' in the course or furtherance of business, the applicant is a supplier of taxable services. Consequently, registration is mandated under the GST enactments if the aggregate turnover in a financial year exceeds the statutory threshold. [Paras 7]The applicant must obtain GST registration in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Classification under tariff heading 9963 (Accommodation, food and beverage services) - Tax rate applicable to hostel accommodation/composite supplies - Tariff classification and applicable rate for the hostel accommodation supplied by the applicant. - HELD THAT: - Hostel accommodation services fall within the accommodation, food and beverage services grouping under tariff heading 9963. Distinguishing hotels (temporary stay with broader facilities) from hostels (longer stay, basic facilities), the Authority held that hostel services do not equate to hotel accommodation and therefore do not attract the hotel-specific rates. The supply of hostel accommodation is classifiable under the residual entry for accommodation services in the notification and, accordingly, is taxable at the rate provided for such accommodation services. [Paras 7]Supply of hostel accommodation falls under tariff heading 9963 and is taxable at 9% CGST + 9% SGST under the relevant entry for accommodation services.Composite supply and principal supply rule - Tax rate applicable to composite supplies - Whether in house food and ancillary services supplied to hostel inmates form a composite supply and the tax rate applicable to such composite supply. - HELD THAT: - The Authority applied the statutory definition of 'composite supply' and observed that the applicant supplies accommodation together with ancillary services (food, housekeeping etc.) for a single consolidated price. The principal supply is the accommodation service; accordingly, Section 8 prescribes that the rate applicable to the principal supply determines the tax on the composite supply. The Authority treated the principal supply as the accommodation service and applied the corresponding tax rate for that principal supply to the composite supply. [Paras 7]The in house food and ancillary services constitute a composite supply whose tax rate is governed by the principal supply (hostel accommodation), and the composite supply is taxable at the rate applicable to that principal supply.Admissibility of questions under Section 97(2) - Ruling on the question which falls outside the scope of Section 97(2) of the GST Act. - HELD THAT: - The Authority examined the set of questions filed and determined that one of the questions does not fall within the ambit of matters on which advance rulings may be given under Section 97(2). Consequently, no ruling could be issued on that particular question. [Paras 7]No ruling is issued on the question that is outside the scope of Section 97(2) of the GST Act.Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as 'renting of residential dwelling for use as residence'; the applicant must obtain GST registration if turnover exceeds the threshold; hostel accommodation is classifiable under tariff heading 9963 and taxable at 9% CGST + 9% SGST; ancillary in house services form a composite supply taxed by the rate of the principal supply; one question was not decided as it fell outside Section 97(2).

Services by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification interpreted strictly - classification under Heading 9963 (Accommodation, food and beverage services) - liability to register where aggregate turnover exceeds threshold - composite supply - principal supplyServices by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification interpreted strictly - Hostel accommodation supplied by the applicant is not eligible for exemption under the Entry for renting of residential dwelling for use as residence. - HELD THAT: - The term 'residential dwelling' is not defined in the CGST Act or the notification; prior administrative guidance under the erstwhile service tax regime described 'residential dwelling' as any residential accommodation excluding hotels, guest houses and similar temporary-stay places. The Authority found that hostels provide accommodation targeted at students/workers with bundled services (food, housekeeping etc.), rooms let out on a per-bed basis and licences/permits for hostels are mandatory under statutory schemes - features not characteristic of a typical residential dwelling let to a family/person as a home. Conversion of residential homes into commercial hostels and the provision of ancillary services with consolidated charges make the premises commercial in character. Exemption notifications must be interpreted strictly and the applicant did not satisfy the twin conditions of (i) renting of a 'residential dwelling' and (ii) renting for use as 'residence'. Reliance on contrary decisions was noted but distinguished or observed to be sub judice. For these reasons the Authority concluded that the applicant's services do not fall within the exemption entry. [Paras 7]Exemption under Entry No.12 of Notification No.12/2017-Central Tax (Rate) and corresponding entries is not available to the applicant for the hostel accommodation supplied.Liability to register where aggregate turnover exceeds threshold - supply - Applicant is required to obtain GST registration if aggregate turnover in a financial year exceeds twenty lakh rupees. - HELD THAT: - Having held that the hostel accommodation is a taxable supply (a business activity in furtherance of business), the transaction falls within the scope of 'supply' under Section 7(1)(a) and Entry No.2(b) of the Second Schedule. Consequently, the applicant, being a supplier of taxable services, is liable to be registered under Section 22 of the GST Acts once the aggregate turnover threshold is crossed. [Paras 7]The applicant must register under the GST Acts if their aggregate turnover in a financial year exceeds twenty lakh rupees.Classification under Heading 9963 (Accommodation, food and beverage services) - tax rate - Supply of hostel accommodation services by the applicant is classifiable under Tariff heading 9963 and taxable at 9% CGST + 9% SGST under Sl. No. 7(vi) of Notification No.11/2017 as amended. - HELD THAT: - The Authority distinguished hotels (temporary stays with extensive facilities) from hostels (longer-term, basic facilities for students/workers). On that basis hostel services cannot be equated with hotel accommodation and therefore do not attract the hotel-specific entries. The Authority held that hostel accommodation falls within Heading 9963 (Accommodation, food and beverage services) and is taxable under the residual entry for accommodation services at the rate specified for that entry - expressed in the decision as 9% CGST + 9% SGST under Sl. No.7(vi) of Notification No.11/2017 (as amended). [Paras 7]Hostel accommodation supplied by the applicant is taxable under Heading 9963 at 9% CGST + 9% SGST under Sl. No.7(vi) of Notification No.11/2017 (as amended).Composite supply - principal supply - The in-house food and other services supplied along with accommodation constitute a composite supply; the rate applicable to the composite supply is the rate applicable to the principal supply. - HELD THAT: - The Authority applied the definition of 'composite supply' under Section 2(30) and the rule in Section 8 that the tax rate of the principal supply applies to a composite supply. The applicant supplies accommodation along with bundled ancillary services (food, housekeeping etc.) for a consolidated charge; accommodation is the principal supply. The Authority therefore held that the tax rate applicable to the principal supply governs the composite supply. (The Authority states the principle and applies it to the applicant's composite supply.) [Paras 7]In-house food and ancillary services are part of a composite supply and the tax rate of the principal supply applies to the composite supply.Scope of advance ruling - admissibility - No ruling is issued on Question No.5 as it does not fall within the scope of Section 97(2) of the GST Act. - HELD THAT: - The Authority examined admissibility under Section 97(2) and found that Question No.5 is outside the scope of matters on which an advance ruling can be given; accordingly no adjudicatory answer was provided on that question. [Paras 6, 7]No ruling on Question No.5 as it is outside the scope of Section 97(2).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt as 'renting of residential dwelling for use as residence'; the applicant must register if turnover exceeds the statutory threshold; the services are classifiable under Heading 9963 and held taxable (authority applied the notification entries and concluded a tax rate under the relevant entry), bundled in-house food forms part of a composite supply governed by the principal supply's rate, and no ruling was given on Question No.5 as it is outside the scope of advance ruling jurisdiction.

Services by way of renting of residential dwelling for use as residence - residential dwelling - composite supply - principal supply determines tax rate - tariff heading 9963 (accommodation, food and beverage services) - strict interpretation of exemption notificationsServices by way of renting of residential dwelling for use as residence - residential dwelling - strict interpretation of exemption notifications - Whether the hostel accommodation supplied by the applicant qualifies as 'renting of residential dwelling for use as residence' and is exempt under the relevant exemption notifications - HELD THAT: - The Authority held that 'residential dwelling' is not defined in the GST enactment and applied the accepted trade parlance and prior administrative guidance to distinguish residential dwellings from hostels. The Authority found that hostels provide accommodation to specific categories (students, workers) with bundled services (food, housekeeping etc.), are often let on a per-bed basis and operate under licences and regulatory regimes applicable to public or commercial buildings rather than ordinary family residences. Conversion of a residential home into a commercial hostel with consolidated services removes its character as a 'residential dwelling'. Exemption notifications must be strictly construed and the burden lies on the assessee to show that the twin conditions of 'renting of residential dwelling' and 'use as residence' are satisfied. On these findings, the Authority concluded that the applicant's hostel accommodation does not meet the conditions of the exemption entries and thus is not exempt under Entry 12 of Notification No.12/2017-Central Tax (Rate) (and the identical entries under the TNGST/Integrated Tax notifications). [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the specified exemption notifications.Tariff heading 9963 (accommodation, food and beverage services) - applicable rate for hostel accommodation - Classification of the applicant's supply and applicable rate of tax - HELD THAT: - The Authority examined Notification No.11/2017 (as amended) and the functional differences between hotels and hostels. It observed that hostels, being used for longer stays with basic facilities, are distinct from hotels meant for temporary stays. Consequently, hostel accommodation services fall within tariff heading 9963 and, under Sl. No. 7(vi) of the notification, are taxable at the rate specified for 'accommodation, food and beverage services other than (i)-(v)'. The Authority therefore applied the rate for that category to the applicant's supply. [Paras 7]Supply of hostel accommodation falls under tariff heading 9963 and is taxable at the rate applicable to Sl. No. 7(vi) of Notification No.11/2017 (as amended).Composite supply - principal supply determines tax rate - Whether in-house food supplied to inmates forms part of a composite supply and the tax rate applicable to such composite supply - HELD THAT: - Applying the definition of 'composite supply', the Authority found that the applicant supplies accommodation together with ancillary services (food, housekeeping) as a naturally bundled single supply for a consolidated price. The principal supply is hostel accommodation. Under Section 8 of the CGST Act, the tax rate applicable to the principal supply governs the composite supply. The Authority accordingly applied the tax rate of the principal supply to the composite supply provided by the applicant. [Paras 7]In-house food and other services are part of a composite supply whose tax rate is determined by the principal supply (hostel accommodation).Final Conclusion: The Advance Ruling: (1) hostel accommodation supplied by the applicant is not exempt as 'renting of residential dwelling for use as residence'; (2) such hostel accommodation falls under tariff heading 9963 and is taxable at the rate applicable to Sl. No. 7(vi) of Notification No.11/2017 (as amended); and (3) in-house food and ancillary services form a composite supply governed by the tax rate of the principal supply.