Services by way of renting of residential dwelling for use as residence - residential dwelling - interpretation of exemption notification - taxable supply - requirement of registration - tariff heading 9963 (Accommodation, food and beverage services) - composite supply - principal supplyServices by way of renting of residential dwelling for use as residence - residential dwelling - interpretation of exemption notification - Whether the hostel accommodation provided by the applicant qualifies as 'residential dwelling for use as residence' and is therefore exempt under Entry 12 of Notification No.12/2017-Central Tax (Rate) (and corresponding state/IGST entries). - HELD THAT: - The Authority found that the phrase 'residential dwelling' is not defined in the CGST Act or the notification and referred to prior administrative interpretation under the erstwhile service tax regime but held that ordinary renting of a residential dwelling denotes letting of premises to a person or family to be used as a home without bundled services such as food and housekeeping. The applicant's premises are let on a per-bed basis with bundled services and ancillary facilities, operate under special licences and regulatory regimes applicable to hostels, and function as a commercial accommodation enterprise rather than a family residence. The Authority therefore concluded that the premises have been converted into a commercial hostel and do not retain the character of a 'residential dwelling for use as residence' within the meaning of the exemption entry. Applying the principle that exemption notifications are to be strictly construed and the burden to show applicability lies on the applicant, the Authority rejected reliance on zoning or other authorities and distinguished the decided authorities cited by the applicant as inapplicable on facts. Consequently, the twin conditions of the exemption (renting of a residential dwelling and use as residence) are not satisfied. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-CT(R) (and corresponding state/IGST entries).Taxable supply - requirement of registration - Whether 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 activity as a supply in the course or furtherance of business. Consequently, the applicant is a supplier of services and, subject to the threshold provisions of Section 22, is required to obtain registration in Tamil Nadu if aggregate turnover in a financial year exceeds the statutory threshold of twenty lakh rupees. [Paras 7]The applicant must register under the GST Acts if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 (Accommodation, food and beverage services) - taxable supply - The classification and rate applicable to the supply of hostel accommodation provided by the applicant. - HELD THAT: - The Authority examined Notification No.11/2017 (as amended) and observed that hostel accommodation is distinct from hotel accommodation. Recognising that hostels provide longer-term basic accommodation with minimal facilities, the Authority held that such services fall under Heading 9963 and, specifically, under the entry for 'Accommodation, food and beverage services other than (i)-(v)' in Sl. No.7(vi) of the Notification. The applicable tax rate for the hostel accommodation supply is therefore 9% CGST + 9% SGST (i.e., the aggregate rate applicable under the stated tariff heading and entry). [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 - tariff heading 9963 (Accommodation, food and beverage services) - Whether in-house food supplied to inmates as part of consolidated charges is exempt as part of a composite exempt supply and, if not, the tax treatment of such bundled supplies. - HELD THAT: - The Authority applied the definition of 'composite supply' and found that the applicant provides accommodation along with food and ancillary services for a single consolidated price; such supplies are naturally bundled with accommodation as the principal supply. As the principal supply (hostel accommodation) is taxable, the composite supply takes the tax rate of the principal supply. The Authority accordingly held that the composite supply provided by the applicant is to be taxed at the rate applicable to the principal supply (aggregate 18% i.e. 9% CGST + 9% SGST). [Paras 7]In-house food and other ancillary 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 (18% aggregate, i.e. 9% CGST + 9% SGST).Final Conclusion: Advance ruling: (i) hostel accommodation supplied by the applicant is not exempt under the residential-dwelling exemption; (ii) the applicant must register under GST if turnover exceeds the statutory threshold; (iii) the supply is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; and (iv) in-house food and ancillary services form a composite supply with accommodation and are taxed at the rate of the principal supply.

Services by way of renting of residential dwelling for use as residence - Residential dwelling - Exemption notification to be strictly interpreted - Tariff heading 9963 (Accommodation services) - Composite supply - Principal supply determines tax rate - Registration under Section 22 of the CGST ActServices by way of renting of residential dwelling for use as residence - Residential dwelling - Exemption notification to be strictly interpreted - Whether the applicant's hostel accommodation qualifies as 'residential dwelling for use as residence' and is therefore exempt under Entry 12 of Notification No.12/2017-Central Tax (Rate) and corresponding State/Central entries. - HELD THAT: - The Authority held that the phrase 'residential dwelling' is not defined in the statute or notification and must be understood in ordinary trade parlance as a place treated as a home. Hostels, which provide lodging to specific categories (students, workers) on per-bed charges with bundled services (food, housekeeping) and require licences/permits specific to public/commercial buildings, are commercial accommodations rather than residential dwellings. Conversion of a residential home into a hostel with consolidated services and per-bed charging removes the character of 'residential dwelling'. Exemption notifications are to be strictly construed and the applicant has not satisfied the twin conditions of renting a 'residential dwelling' for 'use as residence'. Consequently, the hostel accommodation is not eligible for the exemption relied upon by the applicant. [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 - Whether the applicant is required to obtain GST registration in Tamil Nadu. - HELD THAT: - Having held that the hostel services do not qualify as exempt renting of a residential dwelling, the supply of hostel accommodation constitutes a taxable supply in the course of business. As the applicant is a supplier of services, they are obliged to register under Section 22 of the CGST Act if their 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 (Accommodation services) - Accommodation, food and beverage services other than (i)-(v) - Rate of tax - Classification of the applicant's hostel accommodation under the tariff and the applicable rate of tax. - HELD THAT: - The Authority distinguished hostels from hotels and held that hostel accommodation falls within Heading 9963 as 'Accommodation, food and beverage services' and, specifically, within the residual entry for accommodation services other than specified sub-items. Accordingly, the supply of hostel accommodation is taxable under Sl. No. 7(vi) of Notification No.11/2017 (as amended) and attracts CGST and SGST each at 9% (i.e., taxable @9% CGST + 9% SGST). [Paras 7]Hostel accommodation is classifiable under Tariff heading 9963 and taxable @9% CGST + 9% SGST under the cited notification.Composite supply - Principal supply determines tax rate - Whether in-house food supplied to hostel inmates is exempt as part of a composite exempt supply or taxable and at what rate. - HELD THAT: - The services supplied (accommodation together with in-house food and ancillary services) are rendered as a single consolidated supply and satisfy the tests for a composite supply where accommodation is the principal supply and the other services are ancillary. Under Section 8, the rate applicable to a composite supply is the rate on the principal supply. As hostel accommodation (the principal supply) is taxable at the rate stated for Heading 9963, the composite supply including in-house food is taxable at the rate applicable to the principal supply. [Paras 7]In-house food forms part of a composite supply with hostel accommodation; the tax rate of the principal supply applies to the composite 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 obtain GST registration if turnover exceeds the threshold; hostel accommodation is classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; and in-house food supplied as part of the consolidated provision of services is 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 should be interpreted strictly - tariff heading 9963 (Accommodation, food and beverage services) - composite supply - principal supply - tax rate on composite supply under Section 8Services 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 exempt under Entry 12 of Notification No.12/2017-Central Tax (Rate) and the identical entries under the State/Integrated notifications. - HELD THAT: - The Authority held that 'residential dwelling' is not defined in the GST enactments but, as understood in trade parlance and antecedent guidance, denotes accommodation treated as a home rather than commercial lodging. The applicant's premises are let on a per-bed basis with bundled services (food, housekeeping, security), licences and regulatory certificates specific to hostels, and operational features (absence of landlord-tenant maintenance obligations, per-bed charging, temporary/extended but non-family residence) that distinguish them from letting of a residential dwelling to a family or person as a home. Hostels, being regulated as public/commercial buildings and operated with commercial characteristics, have been converted into commercial accommodation analogous to hotels for tax purposes. Exemption notifications are to be strictly construed and the twin conditions of (i) renting of a residential dwelling and (ii) use as a residence must both be satisfied; they are not met on the facts. Reliance on contrary High Court authority was noted but observed to be sub judice before the Supreme Court. On these bases, the Authority concluded that the 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-Central Tax (Rate) (and the identical State/Integrated entries).Tariff heading 9963 (Accommodation, food and beverage services) - Classification and GST rate applicable to the supply of hostel accommodation by the applicant. - HELD THAT: - The Authority observed that hostel services fall under the accommodation, food and beverage services heading and are distinct from hotel accommodation aimed at short-term stays. In the schedule of Notification No.11/2017 as amended, accommodation services not falling within specified sub-items are taxable under the residual entry for accommodation services. Applying that structure and the distinguishing features of hostels, the Authority held that the applicant's hostel accommodation is classifiable under Heading 9963 and taxable under the entry for 'accommodation, food and beverage services other than (i)-(v)', attracting the rate prescribed for that entry. [Paras 7]Supply of hostel accommodation falls under Tariff heading 9963 and is taxable @ 9% CGST + 9% SGST under Sl. No. 7(vi) of Notification No.11/2017 (as amended).Composite supply - principal supply - tax rate on composite supply under Section 8 - Whether in-house food supplied to inmates as part of consolidated charges forms a composite supply with hostel accommodation and the tax rate applicable to such composite supply. - HELD THAT: - The Authority applied the definition of 'composite supply' and concluded that the applicant's supplies (accommodation together with food and ancillary services) are naturally bundled, charged at a single consolidated price, and that accommodation is the principal supply. Under Section 8, the tax rate applicable to a composite supply is the rate of the principal supply. Since hostel accommodation was held to be taxable under Heading 9963 and, in the Authority's reasoning, the principal supply was treated at the rate applicable to the accommodation services, the composite supply takes the rate of the principal supply; accordingly the tax rate for the composite supply is the rate determined for the principal supply. [Paras 7]In-house food supplied as part of consolidated charges forms a composite supply with hostel accommodation and the composite supply is taxable at the rate of the principal supply (as held for the accommodation services).Services by way of renting of residential dwelling for use as residence - Whether a ruling could be issued on the fourth question posed by the applicant. - HELD THAT: - The Authority found that the fourth question 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 on Question No.4 as it falls outside the scope of Section 97(2) of the GST Act.Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not an exempt 'renting of residential dwelling for use as residence'; hostel accommodation is classifiable under Heading 9963 and taxable (9% CGST + 9% SGST under the residual accommodation entry), the in-house food forms part of a composite supply with accommodation and takes the rate of the principal supply, and no advance ruling is provided for the fourth question as it lies outside Section 97(2).

Exemption by way of renting of residential dwelling for use as residence - distinction between residential dwelling and hostel accommodation - composite supply and principal supply determining taxability - classification under tariff heading 9963 (Accommodation, food and beverage services) - registration requirement based on aggregate turnover - strict interpretation of tax exemption notificationsExemption by way of renting of residential dwelling for use as residence - distinction between residential dwelling and hostel accommodation - strict interpretation of tax exemption notifications - Hostel accommodation supplied by the applicant eligible for exemption under Entry 12 of Notification No.12/2017-CT(Rate) / Entry 13 of Notification No.9/2017-IT(Rate) or identical TNGST exemption - HELD THAT: - The Authority observed that 'residential dwelling' is not defined in the GST statute or the notification, but earlier administrative guidance under the erstwhile service tax regime and ordinary parlance treat residential dwelling as accommodation used as a home rather than places meant for temporary or commercial lodging. Hostels provide living accommodation to specific categories (students, workers) with per-bed charges and bundled ancillary services (food, housekeeping), and are often licensed and regulated as public/commercial buildings. The Authority found that conversion of residential homes into commercial hostels, the absence of a landlord-tenant relationship typical of residential tenancies, the per-bed rental model and the provision of bundled services indicate that the applicant's premises do not retain the character of a 'residential dwelling for use as residence.' 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 here. Accordingly the hostel accommodation does not qualify for the exemption. [Paras 7]The services by way of providing hostel accommodation supplied by the applicant are not eligible for exemption under Entry 12 of Notification No.12/2017-CT(Rate) (and the identical entries under the TNGST/Integrated Tax notifications).Registration requirement based on aggregate turnover - supply in the course of furtherance of business - Whether the applicant is required to obtain GST registration - HELD THAT: - Having held that the hostel activity constitutes a taxable supply of services in the furtherance of business, the Authority applied the registration threshold rule. A person making taxable supplies is required to register under the GST Acts if aggregate turnover in a financial year exceeds the statutory threshold. Therefore, if the applicant's aggregate turnover in a financial year exceeds the prescribed limit, registration is mandatory. [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.Classification under tariff heading 9963 (Accommodation, food and beverage services) - applicable rate for hostel accommodation - Tariff classification and rate of tax applicable to the applicant's hostel accommodation services - HELD THAT: - The Authority examined Notification No.11/2017-Central Tax (Rate) as amended and distinguished hotel accommodation from hostel services on the basis of duration of stay, facilities and staffing. Hostels, characterised by longer stays and basic facilities, were held not to be equatable with hotels. Consequently, accommodation services provided by hostels fall under the residual entry for 'Accommodation, food and beverage services other than (i)-(v)' under the notification and attract the rate specified for that entry. [Paras 7]Supply of services by way of providing 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-Central Tax (Rate), as amended.Composite supply and principal supply - tax rate of composite supply determined by principal supply - Whether in-house food supplied to inmates is exempt when supplied along with hostel accommodation as a composite supply - HELD THAT: - The Authority applied the GST definition of 'composite supply' and the rule that tax on a composite supply is determined by the rate applicable to the principal supply. The applicant provides accommodation as the principal service and supplies food and other ancillary services in a consolidated manner without separate pricing. Therefore the combined supply is composite with accommodation as principal supply. Since accommodation services provided by the applicant are taxable, the tax rate applicable to the principal supply governs the composite supply. The Authority noted earlier analysis that the accommodation is taxable and accordingly fixed the tax rate for the composite supply. [Paras 7]In-house food supplied along with hostel accommodation is part of a composite supply and the tax rate applicable to the principal supply (hostel accommodation) governs the composite supply.Admissibility of questions under Section 97(2) - Question falling outside the scope of Section 97(2) of the CGST/TNGST Act and admissibility of ruling - HELD THAT: - The Authority determined admissibility at the outset and held that Questions 1-4 were admissible under Section 97(2) but Question 5 did not fall within the scope of that provision. Consequently, no advance ruling could be issued on Question 5. [Paras 6, 7]No ruling is issued on Question No.5 as it does not fall under 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 taxable under heading 9963 at 9% CGST + 9% SGST and any bundled in-house food forms a composite supply taxed according to the principal supply; no ruling issued on the question outside the scope of Section 97(2).

Exemption under Entry covering services by way of renting of residential dwelling for use as residence - distinction between residential dwelling and commercial/hostel accommodation - interpretation of exemption notifications strictly in favour of revenue - requirement of registration where taxable supply exceeds threshold aggregate turnover - classification of accommodation services under tariff heading 9963 - composite supply and principal supply determining tax rateExemption under Entry covering services by way of renting of residential dwelling for use as residence - distinction between residential dwelling and commercial/hostel accommodation - Whether hostel accommodation provided 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 treated as a home for residence. Hostels, which provide lodging to specific categories (students, workers) on a per-bed basis together with ancillary services and licences specific to hostels, are commercial in character and akin to hotel/accommodation services rather than a residential dwelling let as a residence. The presence of regulatory licences, the per bed charging structure, provision of bundled services (food, housekeeping), absence of landlord-tenant maintenance obligations and the commercial nature of the arrangement lead to the conclusion that the premises do not qualify as 'residential dwelling for use as residence' for the purpose of the exemption entry. Exemption notifications are to be strictly construed and the applicant failed to bring its case squarely within the twin conditions of the entry. Consequently, the hostel accommodation is not covered by the exemption entry. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the cited exemption entries.Requirement of registration where taxable supply exceeds threshold aggregate turnover - taxable supply under Section 7 and Second Schedule - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having concluded that the provision of hostel accommodation is a taxable supply of services in the course or furtherance of business (falling within Section 7 read with the Second Schedule), the Authority held that the applicant is a supplier of services. Therefore, if the applicant's aggregate turnover in a financial year exceeds the statutory threshold (twenty lakh rupees for general States), registration under Section 22 of the GST Acts is required. [Paras 7]The applicant must register under GST in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Classification of accommodation services under tariff heading 9963 - applicability of rate notifications to accommodation services - Tariff heading and rate of tax applicable to the supply of hostel accommodation by the applicant. - HELD THAT: - The Authority examined Notification No.11/2017 (as amended) and concluded that hostel accommodation services are classified under Heading 9963. Distinguishing hotels (temporary stay with extensive facilities) from hostels (longer stay with basic facilities), the Authority held that hostel services fall under the residual entry for 'Accommodation, food and beverage services other than (i)-(v)' in Sl. No.7(vi) and are taxable at the rate applicable to that entry. The Authority accordingly treated the supply of hostel accommodation as taxable under the relevant tariff heading and rate as set out in the notification. [Paras 7]Hostel accommodation services fall under Tariff heading 9963 and are taxable under the rate entry applicable to accommodation services specified in Notification No.11/2017 as amended.Composite supply and principal supply determining tax rate - principal supply test under Section 8 - Whether in-house food supplied to inmates is exempt when supplied along with hostel accommodation as a composite supply, and the tax rate applicable to such composite supply. - HELD THAT: - The Authority applied the definition of 'composite supply' and the principal-supply rule under Section 8 of the CGST Act. The applicant supplies accommodation together with food and other ancillary services for a single consolidated charge; the accommodation is the principal supply. Consequently, the tax rate applicable to the composite supply is the rate applicable to the principal supply. The Authority determined that the principal supply (hostel accommodation) governs the rate for the bundled supply. [Paras 7]In-house food supplied as part of the consolidated hostel service is a composite supply and is taxable at the rate applicable to the principal supply.Scope of Advance Ruling jurisdiction under Section 97(2) - Admissibility of the fifth question in the application for advance ruling. - HELD THAT: - The Authority recorded that the fifth question does not fall within the matters enumerated under Section 97(2) of the CGST/TNGST Act and therefore no 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 hostel accommodation supplied by the applicant is not exempt under the cited exemption entries; the applicant must obtain GST registration if aggregate turnover exceeds the threshold; hostel accommodation is classifiable under Heading 9963 and taxable under the applicable accommodation rate in Notification No.11/2017 (as amended); in-house food supplied with accommodation is a composite supply taxable at the rate of the principal supply; and no ruling is issued on Question No.5 as it falls outside the advance ruling jurisdiction.

Services by way of renting of residential dwelling for use as residence - residential dwelling - composite supply - principal supply - Tariff heading 9963 (Accommodation services) - exemption notification should be interpreted strictlyServices 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 is eligible for exemption under Entry 12 of Notification No.12/2017-CT(Rate) (and the corresponding entries under TNGST/IT notifications). - HELD THAT: - The term 'residential dwelling' is not defined in the GST Act or Notification No.12/2017; however, the Authority examines ordinary trade parlance and prior administrative guidance and finds that a 'residential dwelling' denotes accommodation used as a home by persons/families, ordinarily comprising rooms with household amenities and without bundled commercial services. The applicant's premises are operated as a hostel: charges are levied on a per-bed basis, rooms are subdivided and let to different persons, and a bundle of ancillary services (food, housekeeping, security, etc.) is provided for consolidated charges. Regulatory licences and mandatory registrations for hostels, and the commercial mode of operation, indicate conversion of the premises into a commercial accommodation rather than a residential dwelling. Exemption notifications must be interpreted strictly and the burden to establish applicability lies on the claimant; the twin conditions of (i) renting of a 'residential dwelling' and (ii) use 'as residence' must both be satisfied. On the facts, the premises do not qualify as a 'residential dwelling' let out for use as a residence and therefore do not fall within the exemption entry. [Paras 6, 7]Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-CT(Rate) (and corresponding entries under TNGST/IT notifications).Tariff heading 9963 (Accommodation services) - Tariff classification and applicable rate for the supply of hostel accommodation by the applicant. - HELD THAT: - Having held that the supply is not an exempt supply, the Authority considers the rate schedule under Notification No.11/2017 as amended. Hotels and similar temporary-stay commercial accommodations fall under specified sub-headings; hostel services, which provide longer-term basic accommodation with minimal staff, are not equated to hotel accommodation for the purpose of lower or different tax treatment. The Authority therefore classifies the applicant's supply under Tariff heading 9963 and, specifically for accommodation and food and beverage services other than the listed sub-items, treats the supply as falling under the residual entry attracting the prescribed rate. [Paras 7]Supply of hostel accommodation falls under Tariff heading 9963 and is taxable at 9% CGST + 9% SGST under the relevant entry of Notification No.11/2017 (as amended).Composite supply - principal supply - Whether the in-house food and other ancillary services supplied along with accommodation form a composite supply and, if so, the rate applicable to the composite supply. - HELD THAT: - A composite supply under Section 2(30) comprises two or more taxable supplies naturally bundled with one principal supply. The applicant provides accommodation together with food and ancillary services for a consolidated price and does not separately charge for those ancillary elements. The principal activity is supply of accommodation; therefore, where the supplies form a natural bundle and accommodation is the principal supply, the rate applicable to the principal supply governs the composite supply under Section 8. As the Authority has classified hostel accommodation under Tariff heading 9963 and the applicable combined tax rate is 18% (9% CGST + 9% SGST), the composite supply will be taxed at that rate. [Paras 7]Supply of in-house food and ancillary services together with hostel accommodation constitutes a composite supply; the rate applicable to the principal supply (hostel accommodation) governs the composite supply, and hence the composite supply is taxable at the rate applicable to the accommodation (aggregate 18%).Admissibility of advance ruling - Admissibility of the questions raised in the application under Section 97(2) of the GST Act. - HELD THAT: - The Authority examined the scope of Section 97(2) and determined that Questions 1 to 4 fall within the scope of sub-sections (2)(a), (b) and (f) and are therefore admissible; one of the questions did not fall within the scope and no ruling could be issued on that question. [Paras 6, 7]Questions 1 to 4 (as identified) are admissible for advance ruling; one question (Question No.4 as framed) does not fall within Section 97(2) and no ruling is issued on it.Final Conclusion: The Authority rules that the applicant's hostel accommodation is not exempt as 'renting of residential dwelling for use as residence'; the supply is classifiable under Tariff heading 9963 and taxable at 9% CGST + 9% SGST, and where food and other services are provided as a composite supply with accommodation as the principal supply, the composite supply is taxable at the rate applicable to accommodation (aggregate 18%). One question fell outside the advance ruling jurisdiction and no ruling is given on it.

Services by way of renting of residential dwelling for use as residence - Residential dwelling - Composite supply - Principal supply - Registration under GST - Tariff heading 9963 - accommodation services - Strict interpretation of exemption notificationServices by way of renting of residential dwelling for use as residence - Residential dwelling - Strict interpretation of exemption notification - Whether the hostel accommodation supplied by the applicant is exempt as 'renting of residential dwelling for use as residence'. - HELD THAT: - The Authority observed that the phrase 'residential dwelling' is not defined in the CGST Act or the notification but, as understood in trade parlance and earlier administrative guidance, denotes accommodation used as a home rather than temporary or commercial lodging. Hostels supply lodging to specific categories (students, workers) with payments on a per bed and consolidated basis and include ancillary services (food, housekeeping). Regulatory licensing and mandatory certificates for hostels, the absence of landlord tenant obligations typical of residential tenancies, and the commercial manner of letting (subdivision, per bed charges, bundled services) indicate conversion of residential premises into commercial hostel accommodation. Exemption notifications must be strictly construed and both limbs - 'renting of residential dwelling' and 'for use as residence' - must be satisfied; they are not met here. Reliance on divergent judicial decisions was noted but distinguished on facts or pending challenge. On these grounds the Authority concluded the applicant's supply is not within the exemption entry. [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 corresponding State/Integrated entries).Registration under GST - Supply - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the hostel services are taxable and constitute a supply in the course of furtherance of business, the Authority applied Section 22 which requires registration where aggregate turnover in a financial year exceeds the threshold. The supply of hostel accommodation carried out for consideration therefore attracts the registration obligation if turnover exceeds the statutory limit. [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 services - Principal supply - Classification of the supply and the applicable rate for the hostel accommodation service. - HELD THAT: - The Authority considered Notification No.11/2017 as amended and distinguished hotels (temporary stay with extensive facilities) from hostels (longer stay, basic facilities). Hostel accommodation falls within Heading 9963 as accommodation services other than specified hotel categories and is therefore taxable under the residual entry for accommodation, food and beverage services other than the listed sub items. The Authority concluded that the correct classification is under tariff heading 9963 and the applicable rate is as prescribed for that residual category. [Paras 7]Hostel accommodation services are classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST (total 18%) under the residual entry of Notification No.11/2017 as amended.Composite supply - Principal supply - Tariff heading 9963 - accommodation services - Whether in house food supplied to inmates is exempt as part of a composite exempt supply if hostel accommodation were exempt. - 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 price. Where services are naturally bundled and one is the principal supply, the tax treatment of the composite supply follows the principal supply under Section 8. Since the principal supply here is hostel accommodation (taxable as above), the composite supply takes the tax rate of the principal supply. Although the Authority earlier held accommodation itself is not exempt, it further ruled on the composite character and tax consequence. [Paras 7]In house food and ancillary services supplied with hostel accommodation form a composite supply and attract the tax rate applicable to the principal supply; the composite supply is taxable at the rate applicable to the hostel accommodation (total 18% i.e., 9% CGST + 9% SGST).Final Conclusion: The Authority ruled that the applicant's ladies hostel accommodation is not an exempt 'renting of residential dwelling for use as residence'; the applicant must register for GST if turnover exceeds the threshold; the services classify under Heading 9963 and are taxable at 9% CGST + 9% SGST; in house food and other bundled services form a composite supply taxable at the principal supply's rate. No ruling was issued on the applicant's fifth question as it fell outside Section 97(2).

Services by way of renting of residential dwelling for use as residence - hostel accommodation as commercial accommodation - composite supply - principal supply - taxable supply - registration under Section 22 of the CGST Act - tariff heading 9963 (Accommodation, food and beverage services) - strict interpretation of exemption notificationServices by way of renting of residential dwelling for use as residence - hostel accommodation as commercial accommodation - 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 term 'residential dwelling' is not defined in the enactment but, in ordinary trade parlance, denotes accommodation used as a home where people reside treating it as a family residence; it does not include commercial lodging like hotels, inns or similar places. Hostels, which provide accommodation to specific categories (students, workers) on a per-bed basis together with ancillary services and licences specific to hostels, are commercial in character. The premises in this case are subdivided and let on a per-bed consolidated charge with ancillary services (food, housekeeping, security), and the regulatory requirement of licensing for hostels (public building licences, sanitary, trade, fire NOC etc.) further supports that such premises are not 'residential dwelling' for the purposes of the exemption. Exemption notifications must be strictly construed and the burden to show entitlement rests on the applicant; since the twin conditions of 'renting of residential dwelling' and 'use as residence' are not satisfied, the exemption does not apply to the applicant's hostel services. [Paras 7]Services of providing hostel accommodation by the applicant are not eligible for exemption under the cited exemption notifications.Taxable supply - registration under Section 22 of the CGST Act - Whether the applicant is required to obtain GST registration. - HELD THAT: - Having held that the activity constitutes a taxable supply of services in the course of business, the Authority applied the registration threshold rule. A person making taxable supplies is liable to be registered in the State if aggregate turnover in a financial year exceeds the statutory threshold. Accordingly, the applicant, being a supplier of hostel accommodation services, must obtain registration in Tamil Nadu if its aggregate turnover exceeds the prescribed limit in a financial year. [Paras 7]The applicant is required to register under the GST Acts in Tamil Nadu if aggregate turnover in a financial year exceeds twenty lakh rupees.Tariff heading 9963 (Accommodation, food and beverage services) - taxable supply - Tariff classification and rate applicable to the applicant's hostel accommodation services. - HELD THAT: - The Authority distinguished hostels from hotels: hotels are temporary-stay commercial establishments with different facilities, whereas hostels provide longer-term basic accommodation. Under the notifications governing accommodation services, hostel accommodation falls within the residual category of accommodation services under Heading 9963. The Authority held that such services are taxable under the specified entry for 'Accommodation, food and beverage services other than (i)-(v)' and accordingly attract the rate specified therein, resulting in taxation at the prescribed CGST and SGST rates. [Paras 7]Supply of hostel accommodation services falls under Tariff heading 9963 and is taxable at 9% CGST + 9% SGST under the specified entry of the rate notification.Composite supply - principal supply - taxable supply - Whether in-house food supplied to inmates is exempt when supplied along with hostel accommodation as a composite supply, and the rate applicable to the composite supply. - HELD THAT: - The Authority applied the statutory definition of 'composite supply' and held that where multiple services are naturally bundled and supplied together for a single consolidated price, and one service is the principal supply, the tax rate of the principal supply applies to the composite supply. The applicant provides accommodation as the principal service and supplies food and ancillary services in a consolidated manner without separate pricing. Since the principal supply (hostel accommodation) is taxable, the composite supply takes the tax rate of the principal supply. The Authority noted the applicable tax rate on the principal supply and applied it to the composite supply accordingly. [Paras 7]In-house food supplied to inmates forms part of a composite supply whose principal supply is hostel accommodation; the composite supply is taxable at 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 a 'residential dwelling for use as residence'; the activity constitutes a taxable supply requiring registration if turnover exceeds the threshold; such services are classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; and in-house food forms part of a composite supply taxed at the rate applicable to the principal supply.

Services by way of renting of residential dwelling for use as residence - exemption notification to be interpreted strictly - residential dwelling versus hostel/accommodation - taxable supply and requirement of registration on exceeding aggregate turnover - tariff heading 9963 (accommodation, food and beverage services) - composite supply and principal supply ruleServices by way of renting of residential dwelling for use as residence - residential dwelling versus hostel/accommodation - exemption notification to be interpreted strictly - Services by way of providing hostel accommodation supplied by the applicant eligible for exemption under Entry 12 of Notification No.12/2017-CT (Rate) and corresponding state/IT notifications - HELD THAT: - The Authority held that the term 'residential dwelling' is not defined in the CGST Act or the notification and must be narrowly construed. A residential dwelling is commonly understood as accommodation used as a home by a person or family and not one subdivided and let on a per-bed basis with bundled services. Hostels provide lodging to specific categories (students, workers) with ancillary services, licences and regulatory requirements distinct from a typical residential dwelling, and are operated as commercial/public buildings. Exemption notifications are to be interpreted strictly and the twin conditions - renting of a residential dwelling and use as residence - must be satisfied. On the facts, the premises are commercial hostel accommodation and do not qualify as 'residential dwelling for use as residence'; accordingly the exemption does not apply. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the cited exemption notifications.Taxable supply and requirement of registration on exceeding aggregate turnover - Whether the applicant is required to obtain GST registration - HELD THAT: - Having held the hostel activity to be a supply of services in the course or furtherance of business, the Authority applied the registration threshold under the GST law. A supplier of taxable services must register in the State if the aggregate turnover in a financial year exceeds the statutory threshold. Therefore, the applicant is liable to obtain registration in Tamil Nadu if its aggregate turnover in a financial year exceeds twenty lakh rupees. [Paras 7]The applicant must get registered under the GST Act in Tamil Nadu if aggregate turnover in a financial year exceeds Rs. 20 lakh.Tariff heading 9963 (accommodation, food and beverage services) - tax rate applicable to hostel accommodation - Tariff heading and applicable rate of tax for the supply of hostel accommodation services - HELD THAT: - The Authority classified the supply under Heading 9963 (Accommodation, food and beverage services). Distinguishing hotels from hostels, it found hostel services fall under the residual entry for accommodation services other than specified sub-items. Applying Notification No.11/2017 and its amendments, the supply of hostel accommodation is taxable at the applicable rate under Sl. No. 7(vi) (i.e. effectively 9% CGST + 9% SGST, totaling 18%). [Paras 7]The supply of hostel accommodation falls under Tariff heading 9963 and is taxable at 9% CGST + 9% SGST (total 18%).Composite supply and principal supply rule - tax rate for composite supply - Whether in-house food supplied to inmates is exempt as part of a composite exempt supply, and the tax rate applicable to the composite supply - HELD THAT: - The Authority examined the nature of the bundled services and found the applicant provides accommodation together with ancillary services (food, housekeeping) for a consolidated charge. Such supplies constitute a composite supply where one supply is the principal supply. The principal supply is accommodation services; accordingly the tax rate applicable to the composite supply is the tax rate of the principal supply. As the principal supply (hostel accommodation) is taxable at the rate noted above, the composite supply is taxable at that rate. [Paras 7]In-house food supplied along with accommodation forms a composite supply; the tax rate of the principal supply applies and the composite supply is taxable at the principal rate (18% total).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt under the cited exemption notifications, the applicant must obtain GST registration if aggregate turnover exceeds the statutory threshold, the accommodation services fall under tariff heading 9963 and are taxable at 9% CGST + 9% SGST (total 18%), and in-house food provided as part of the bundled services forms a composite supply chargeable at the principal supply rate.

Services by way of renting of residential dwelling for use as residence - Taxability of hostel accommodation - Composite supply - Principal supply determining tax rate - Registration requirement under Section 22 of the CGST ActServices by way of renting of residential dwelling for use as residence - Taxability of hostel accommodation - Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-CT(Rate) (and corresponding State/Integrated entries). - HELD THAT: - The expression 'residential dwelling' is not defined in the GST enactments but, by reference to prior administrative guidance and ordinary parlance, denotes accommodation treated as a home. Renting as a residential dwelling usually involves letting a house or part thereof to a person or family for use as residence without bundled amenities. A hostel provides lodging to specific categories (students, workers) with per bed billing and bundled services (food, housekeeping etc.), and often requires licences and certificates specific to hostels, showing a regulatory and functional distinction from a typical residential dwelling. Conversion of residential homes into commercial hostel premises for supplying accommodation and ancillary services removes the character of 'residential dwelling'. Exemption notifications must be strictly construed and the burden to show applicability lies on the applicant. On these grounds and having considered the case law relied upon (including a pending SLP against a contrary High Court order), the Authority holds that the applicant's hostel accommodation does not satisfy the twin requirements of 'renting of residential dwelling' for 'use as residence' and therefore is not covered by the exemption entry. [Paras 7]The hostel accommodation is not eligible for the exemption under the cited entries.Registration requirement under Section 22 of the CGST Act - Supply - Whether the applicant is required to obtain GST registration. - HELD THAT: - Since the supply of hostel accommodation does not qualify as an exempt renting of residential dwelling, the transactions constitute 'supply' in furtherance of business. Consequently, the applicant is a supplier of services and must obtain registration under the GST law if the aggregate turnover in a financial year exceeds the prescribed threshold. [Paras 7]The applicant must register under the GST Acts if aggregate turnover exceeds twenty lakh rupees in a financial year.Taxability of hostel accommodation - Tariff heading 9963 - Tariff classification and rate applicable to the applicant's hostel accommodation services. - HELD THAT: - Hostel accommodation is distinguishable from temporary hotel accommodation; hostels are longer term and provide basic facilities. Accordingly, hostel services fall under the accommodation, food and beverage services heading (Tariff heading 9963) and, by reference to the rate notification entries, are classifiable under the residual entry for accommodation services other than specified hotel categories. The Authority holds that such hostel accommodation is taxable at the rate specified for that residual entry. [Paras 7]Hostel accommodation falls under Tariff heading 9963 and is taxable @ 9% CGST + 9% SGST under Sl. No. 7(vi) of Notification No.11/2017 as amended.Composite supply - Principal supply determining tax rate - Whether in house food supplied to hostel inmates is exempt when provided along with accommodation, and the applicable tax treatment for bundled charges. - HELD THAT: - The applicant provides accommodation together with ancillary services including food for a consolidated charge. Such a transaction qualifies as a composite supply where accommodation is the principal supply and food and other services are ancillary, provided they are naturally bundled and charged as a single price. For composite supplies, the tax rate of the principal supply applies to the whole composite supply. As hostel accommodation is taxable at the rate applicable to the accommodation service determined by the Authority, the same rate governs the composite supply. [Paras 7]In house food forms part of a composite supply whose tax is governed by the principal supply (hostel accommodation); the composite supply is taxable at the rate applicable to the principal supply.Scope of advance ruling under Section 97(2) - Whether a ruling could be issued on the applicant's fifth question. - HELD THAT: - The Authority examined the scope of admissible questions under Section 97(2) and found that the fifth question does not fall within that scope; accordingly, no ruling can be issued on that point. [Paras 6, 7]No ruling issued for Question No.5 as it does not fall under Section 97(2).Final Conclusion: Advance ruling: (i) hostel accommodation supplied by the applicant is not exempt under the specified exemption entries; (ii) the applicant must obtain GST registration if aggregate turnover exceeds the threshold; (iii) hostel services fall under Tariff heading 9963 and are taxable at 9% CGST + 9% SGST under the residual accommodation entry; (iv) in house food is part of a composite supply governed by the principal supply's rate; and (v) no ruling on Question 5 as it is outside Section 97(2).

Services by way of renting of residential dwelling for use as residence - interpretation of exemption notification (strict interpretation) - classification under Heading 9963 (Accommodation, food and beverage services) - composite supply - principal supply - registration under Section 22 of the CGST ActServices by way of renting of residential dwelling for use as residence - interpretation of exemption notification (strict interpretation) - Whether the hostel accommodation supplied by the applicant is eligible for exemption under Entry 12 of Notification No. 12/2017-CT (Rate) (and identical entries under TNGST/Integrated Tax notifications). - HELD THAT: - The Authority found that the phrase 'residential dwelling' is not defined in the GST law or notification and relied on the understanding under erstwhile guidance that residential dwelling denotes accommodation used as a home. The Authority analysed characteristics distinguishing a residential dwelling from a hostel: hostels provide accommodation to specific categories (students, workers), supply ancillary services (food, housekeeping) often on a per bed basis, are regulated by specific licensing and public building rules, and operate as commercial accommodation rather than as letting of a whole house to a family. These features show conversion of a residential home into a commercial hostel and absence of typical landlord tenant relationships and maintenance obligations found in renting of residential dwellings. The Authority emphasised that exemption notifications must be strictly interpreted and the burden to show applicability lies on the applicant. Applying these principles to the facts, it held the twin conditions of the entry ('residential dwelling' and 'for use as residence') are not satisfied and therefore the applicant's hostel accommodation is not exempt under Entry 12 of Notification No.12/2017-CT(Rate) (and identical 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 identical entries under the TNGST/Integrated Tax notifications).Registration under Section 22 of the CGST Act - Whether the applicant is required to obtain GST registration for the hostel services. - HELD THAT: - Having held that the hostel accommodation is not an exempt supply, the Authority concluded that the transactions constitute 'supply' in the course or furtherance of business. Consequently the applicant is a supplier of services and is required to register under the GST law in the State of Tamil Nadu if its aggregate turnover in a financial year exceeds the threshold prescribed under the Act. [Paras 7]The applicant must obtain GST registration in Tamil Nadu if its aggregate turnover in a financial year exceeds twenty lakh rupees.Classification under Heading 9963 (Accommodation, food and beverage services) - taxability at 9% CGST + 9% SGST - Tariff classification and applicable rate for the hostel accommodation services supplied by the applicant. - HELD THAT: - The Authority analysed Notification No.11/2017-Central Tax (Rate) as amended and distinguished hostels from hotels (temporary stay with extensive facilities). Finding hostel services to be distinct from hotel accommodation, it classified the supply under Heading 9963 as 'Accommodation, food and beverage services' and specifically under the residual entry for accommodation services other than enumerated items. Accordingly, the Authority held that hostel accommodation services are taxable at the rate applicable to Sl. No.7(vi) of the notification, i.e., 9% CGST plus 9% SGST (total 18%). [Paras 7]Hostel accommodation services fall under Heading 9963 and are taxable at 9% CGST + 9% SGST under Sl. No. 7(vi) of Notification No.11/2017-Central Tax (Rate) as amended.Composite supply - principal supply - Whether in house food supplied to inmates is exempt as part of a composite exempt supply if hostel accommodation were exempt. - HELD THAT: - The Authority observed that the applicant supplies accommodation together with ancillary services (food and others) for a consolidated charge and that these services are naturally bundled. Applying the statutory definition of 'composite supply', the Authority held that hostel accommodation is the principal supply and other services are ancillary. Under Section 8, the tax rate of the principal supply applies to the composite supply. Since the principal supply (hostel accommodation) is taxable at an aggregate rate of 18% (9% CGST + 9% SGST), the composite supply comprising accommodation and in house food is to be taxed at that rate. [Paras 7]In house food supplied to inmates forms part of a composite supply whose principal supply is hostel accommodation; the composite supply is taxable at the rate applicable to the principal supply (aggregate 18%).Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt under the relevant exemption notifications; the applicant must register under GST if turnover exceeds the statutory threshold; hostel services are classifiable under Heading 9963 and taxable at 9% CGST + 9% SGST; in house food forms part of a composite supply taxed at the rate of the principal supply. No ruling was issued on the applicant's Question No.5 as it fell outside the scope of Section 97(2).

Services by way of renting of residential dwelling for use as residence - interpretation of exemption notification strictly against assessee - composite supply and principal supply rule - requirement of GST registration on taxable supplies - classification of hostel accommodation under tariff heading 9963Services by way of renting of residential dwelling for use as residence - interpretation of exemption notification strictly against assessee - classification of hostel accommodation under tariff heading 9963 - Hostel accommodation supplied by the applicant is not eligible for exemption under Entry 12 of Notification No.12/2017-Central Tax (Rate) and identical entries under the State/Integrated notifications. - HELD THAT: - The Authority held that the term 'residential dwelling' is not defined in the statute and must be understood in ordinary trade parlance as a dwelling used as a home. A hostel, by contrast, provides accommodation to specific categories (students, workers) with bundled services on a per bed basis and is operated as a commercial accommodation. The presence of licences, mandatory certificates and regulatory treatment for hostels as public/commercial buildings further indicates that such premises are not residential dwellings for the purpose of the exemption. The Authority emphasised that exemption notifications are to be strictly construed and the twin conditions of 'renting of residential dwelling' and 'use as residence' must both be satisfied; they were not met here. Reliance placed on contrary High Court authority was noted to be sub judice before the Supreme Court and not followed. Conclusion follows that the applicant's hostel accommodation does not fall within the exemption entry. [Paras 7]Hostel accommodation services supplied by the applicant are not exempt under the cited exemption notifications.Requirement of GST registration on taxable supplies - supply in course of furtherance of business - Applicant is required to obtain GST registration if aggregate turnover in a financial year exceeds the statutory threshold. - HELD THAT: - Having held that the hostel services are taxable supplies in the course of business, the Authority applied Section 22 to conclude that the applicant must register under the GST Acts if aggregate turnover exceeds the notified threshold. The transaction was characterised as supply under Section 7(1)(a) read with the Second Schedule, and therefore registration obligations arise when turnover conditions are met. [Paras 7]The applicant must obtain registration in Tamil Nadu if aggregate turnover exceeds twenty lakh rupees in a financial year.Classification of hostel accommodation under tariff heading 9963 - Supply of hostel accommodation falls under Tariff heading 9963 and is taxable at the rate applicable to accommodation, food and beverage services other than specified sub entries. - HELD THAT: - The Authority examined Notification No.11/2017 (as amended) and distinguished hotel accommodation from hostel services, observing that hostels provide longer term, basic accommodation. It therefore held that hostel services are not hotel services and so attract the rate prescribed for 'Accommodation, food and beverage services other than (i) to (v) above' i.e., the entry covering other accommodation services under Heading 9963. The applicable tax rate was determined accordingly as per the Notification entries relied upon. [Paras 7]Hostel accommodation services fall under Heading 9963 and are taxable at the rate specified for other accommodation services (9% CGST + 9% SGST as held).Composite supply and principal supply rule - In house food supplied to inmates is part of a composite supply and the tax rate of the principal supply (hostel accommodation) applies to the composite supply. - HELD THAT: - Applying the definition of 'composite supply' and Section 8, the Authority found that accommodation is the principal supply and ancillary services (including food) are naturally bundled and supplied for a single price. Consequently, the tax rate of the principal supply governs the composite supply. As the principal supply (hostel accommodation) was held taxable at the higher slab applicable to accommodation services, that rate governs the composite supply. [Paras 7]In house food supplied to inmates forms part of a composite supply; the tax rate of the principal supply (hostel accommodation) applies to the composite supply.Final Conclusion: The Authority ruled that the applicant's hostel accommodation is not exempt under the cited exemption notifications; the applicant must register if turnover exceeds the threshold; hostel accommodation is classifiable under Heading 9963 and taxable at the applicable accommodation rate; in house food forms part of a composite supply taxed at the rate of the principal 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 - Interpretation of exemption notification strictly - Composite supply - Principal supply - Supply liable to registration on exceeding aggregate turnover - Tariff heading 9963 - accommodation servicesServices by way of renting of residential dwelling for use as residence - Interpretation of exemption notification strictly - Hostel accommodation supplied by the applicant is eligible for exemption under Entry 12 of Notification No.12/2017-CT(R) / Entry 13 of Notification No.09/2017-IT(R) or not - HELD THAT: - The Authority found that the phrase 'residential dwelling' is not defined in the GST enactments and that the erstwhile CBIC guidance excluded hotels, inns, guest houses and similar temporary accommodations. Hostel services, as operated by the applicant, involve per-bed charging, subdivision of a dwelling for multiple unrelated occupants, provision of ancillary services (food, housekeeping, security) and regulatory/licensing requirements applicable to public/commercial buildings. These features convert the premises into commercial accommodation akin to hotel/boarding facilities rather than a residential dwelling used as a family residence. Exemption notifications are to be interpreted strictly and the twin conditions - (i) renting of a residential dwelling and (ii) use as residence - must both be satisfied. On the facts and regulations, the applicant's premises do not qualify as a 'residential dwelling for use as residence' and therefore the exemption does not apply. [Paras 6, 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the cited exemption notifications.Supply liable to registration on exceeding aggregate turnover - Whether the applicant is required to obtain GST registration - HELD THAT: - Having held that the applicant supplies taxable accommodation services (not exempt), the Authority treated the transactions as 'supply' in the course of business. In consequence, registration obligations under the GST law apply: every supplier of services must register in the State if aggregate turnover in a financial year exceeds the statutory threshold. The applicant must therefore obtain registration in Tamil Nadu if its aggregate turnover in a financial year exceeds the prescribed limit. [Paras 7]The applicant is required to be registered in Tamil Nadu if aggregate turnover in a financial year exceeds the threshold specified in the GST law.Tariff heading 9963 - accommodation services - Classification and applicable rate for the supply of hostel accommodation - HELD THAT: - The Authority distinguished hostels from hotels on the basis of duration of stay, facilities and staffing, holding that hostel services are accommodation services falling under tariff heading 9963. Under Notification No.11/2017 as amended (post-2019 changes), accommodation, food and beverage services other than specified sub-items are taxable at the rate set out for 'other' accommodation services. The Authority therefore applied the entry corresponding to accommodation services not covered by the specific hotel/low-tariff categories and held the applicable tax rate to be 9% CGST + 9% SGST (i.e., taxable at the rate specified for heading 9963 other 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 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 or taxable with the accommodation - HELD THAT: - The Authority noted that the applicant charges a consolidated amount for accommodation and ancillary services and does not separately charge for food. Under the GST definition, where two or more supplies are naturally bundled and one is a principal supply, the composite supply is taxed at the rate of the principal supply. The principal activity was held to be accommodation. Since hostel accommodation is taxable at the rate determined for tariff heading 9963 (resulting in an aggregate tax rate of 18% CGST+SGST combined), the composite supply incorporating in-house food is to be taxed at the principal supply's rate. The Authority therefore treated the composite supply as taxable at the rate applicable to the principal supply. [Paras 7]In-house food supplied as part of the composite supply is taxable at the rate applicable to the principal supply (i.e., the accommodation), resulting in the composite supply being taxable at the same rate as the accommodation supply.Admissibility of the fifth question and issuance of ruling thereon - HELD THAT: - The Authority examined the scope of Section 97(2) and determined that the fifth question does not fall within the matters on which an advance ruling may be sought under that provision. Accordingly, no ruling could be issued on Question No.5. [Paras 6, 7]No ruling issued for Question No.5 as it falls outside the scope of Section 97(2) of the GST Act.Final Conclusion: The Authority held that the applicant's hostel accommodation does not qualify as 'renting of residential dwelling for use as residence' and is not exempt; the applicant must register if aggregate 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 applicable to the principal supply; and no ruling was issued on Question No.5 as it was outside the advance ruling jurisdiction.

Services by way of renting of residential dwelling for use as residence - residential dwelling - composite supply - principal supply - tariff heading 9963 - exemption notification should be interpreted strictlyServices by way of renting of residential dwelling for use as residence - residential dwelling - exemption notification should be interpreted strictly - Whether the hostel accommodation supplied by the applicant is exempt under Entry 12 of Notification No.12/2017-CT (Rate) (and the identical entries under the TNGST/IT notifications). - HELD THAT: - The Authority held that the phrase 'residential dwelling' is not defined in the GST statute or the notification and must be given its ordinary meaning; exemption is aimed at renting of a dwelling used as a home. Hostels, which provide lodging to specific categories (students, workers) on a per bed basis with bundled services, regulatory licences and mandatory public building compliances, are commercial in character and akin to accommodation provided for temporary stay. The applicant's business model (per bed charges, consolidated services, lack of landlord-tenant attributes such as maintenance obligations) indicates conversion of residential homes into commercial hostel premises. Exemption notifications are to be strictly construed and the applicant did not satisfy the twin conditions of (i) being a 'residential dwelling' and (ii) being rented 'for use as residence'; accordingly the services do not fall within the exempt entry. [Paras 6, 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 entries under the TNGST/IT notifications).Tariff heading 9963 - hotel accommodation - The classification and applicable rate for the supply of hostel accommodation by the applicant. - HELD THAT: - The Authority examined Notification No.11/2017 (as amended) and distinguished hotels from hostels on the basis of duration, facilities and commercial character. It concluded that hostel services are accommodation services under tariff heading 9963 but do not equate to hotel accommodation; accordingly such hostel accommodation falls under the residual entry for accommodation, food and beverage services (Sl. No.7(vi) / 7(ix) as applicable) attracting the rate provided therein. In the ruling the Authority fixed the tax incidence on the hostel accommodation under heading 9963 and specified the applicable CGST/SGST rates. [Paras 7]Supply of hostel accommodation falls under tariff heading 9963 and is taxable @ 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 inmates along with accommodation is an exempt composite supply or taxable at the rate of the principal supply. - HELD THAT: - Applying the statutory definition of composite supply, the Authority found that the applicant supplies accommodation together with food and ancillary services as a single, naturally bundled transaction for a consolidated price. The principal supply is accommodation; therefore, under Section 8 the tax rate applicable to the principal supply applies to the composite supply. The Authority treated the composite transaction as taxable at the rate applicable to the principal supply specified in its ruling on classification/rate. [Paras 7]In house food supplied to inmates is part of a composite supply and is taxable at the rate applicable to the principal supply.Final Conclusion: The Authority ruled that (i) the applicant's hostel accommodation is not exempt under the referenced exemption notifications, (ii) the accommodation is classifiable under tariff heading 9963 and held taxable at the rate specified in Sl. No.7(vi) of Notification No.11/2017 (as amended) (9% CGST + 9% SGST), and (iii) the in house food forms part of a composite supply and is taxable at the rate of the principal supply as determined above; no ruling issued on Question No.4 as it falls outside Section 97(2).

Services by way of renting of residential dwelling for use as residence - residential dwelling - interpretation of exemption notification (strict rule) - tariff heading 9963 (Accommodation, food and beverage services) - taxability of hostel accommodation - composite supply - principal supplyServices by way of renting of residential dwelling for use as residence - residential dwelling - interpretation of exemption notification (strict rule) - Hostel accommodation provided by the applicant does not qualify as 'residential dwelling for use as residence' and is not eligible for exemption under Entry 12 of Notification No.12/2017-Central Tax (Rate) and the corresponding entries under the State notifications. - HELD THAT: - The Authority noted that 'residential dwelling' is not defined in the GST statute but, following prior administrative guidance and common parlance, denotes accommodation treated as a home for a person or family and not establishments meant for temporary or sociable lodging. The applicant's premises, let out on per-bed basis with bundled services (food, housekeeping, etc.), operated under licences and regulatory regimes applicable to hostels and public/commercial buildings, and lack the characteristics of a house let to a family (such as division of maintenance responsibilities and kitchen/living arrangements). Exemption notifications are to be strictly construed and the twin conditions-(i) renting of a residential dwelling and (ii) use as residence-must both be satisfied. On the facts and documentary material, the Authority concluded the premises have been converted into commercial hostel accommodation and therefore do not fall within the exemption entry. The Authority rejected the applicant's reliance on decisions and zoning permissions as determinative, observing pending challenge to contrary precedents and that zoning or permit classification does not by itself convert a commercial hostel into an exempt residential dwelling. [Paras 7]Hostel accommodation supplied by the applicant is not eligible for exemption under the cited entries of Notification No.12/2017-Central Tax (Rate) and corresponding State notifications.Tariff heading 9963 (Accommodation, food and beverage services) - taxability of hostel accommodation - Hostel accommodation supplied by the applicant falls under Tariff heading 9963 and is a taxable service. - HELD THAT: - The Authority examined the rate schedule in Notification No.11/2017 (as amended) and distinguished hostels from hotels: hotels are for temporary short stays with broader facilities, whereas hostels offer longer-term basic accommodation. Accordingly, hostel services do not qualify for the lower/Hotel-specific sub-entries and are classifiable under the residual accommodation entry for 'Accommodation, food and beverage services other than (i) to (v)' (Heading 9963). The Authority therefore held the supply to be taxable under the relevant entry of Notification No.11/2017 as amended. [Paras 7]Supply of hostel accommodation will fall under Tariff heading 9963 and is taxable under the rate notification.Composite supply - principal supply - taxability of composite supplies - The supply of in-house food and other services bundled with hostel accommodation constitutes a composite supply, and the tax rate applicable to the principal supply governs the composite supply. - HELD THAT: - Applying the definition of composite supply, the Authority found the applicant provides multiple services (accommodation together with food and other ancillary services) as a naturally bundled single supply for a single consolidated price. The principal supply is the hostel accommodation. Under Section 8 of the CGST Act, the rate of tax applicable to the principal supply applies to the entire composite supply. The Authority therefore treated the composite supply as taxable at the rate applicable to the principal supply. [Paras 7]In-house food and ancillary services supplied along with hostel accommodation form a composite supply and are taxable at the 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 accommodation is classifiable under Tariff heading 9963 and is taxable; supplies of food and other bundled services are composite with the hostel accommodation as the principal supply and are taxable at the rate applicable to that principal supply.

Services by way of renting of residential dwelling for use as residence - definition and scope of "residential dwelling" - end-use condition for exemption - interpretation of exemption notifications strictly against assessee - burden of proof on assessee to demonstrate applicability of exemption - exclusion where residential dwelling is rented to a registered person (amendment) - distinction between hostel/commercial accommodation and residential dwellingServices by way of renting of residential dwelling for use as residence - definition and scope of "residential dwelling" - distinction between hostel/commercial accommodation and residential dwelling - Leasing of the appellant's hostel building attracts GST and is not exempt as 'renting of residential dwelling for use as residence'. - HELD THAT: - The authority examined the character and sanctioned purpose of the premises, the lease deed and the manner of its use. The building was constructed and sanctioned as a 'hostel' (G+4 hostel approval) and the lease describes the premises as for running a students' hostel. The lessee is a commercial entity which sub lets the premises to an educational society that operates a mess and provides bundled services (accommodation plus food), demonstrating commercial hostel operations rather than a residential dwelling used as a home by the lessee. The exemption entry is directed to 'residential dwelling' used as residence in ordinary understanding (a home where a person lives and cooks, not establishments providing temporary/managed accommodation). Applying the settled rule that exemption notifications must be strictly construed and the burden lies on the claimant to prove applicability, the facts show the premises is a commercial hostel and not a residential dwelling eligible for the exemption. The Appellate Authority therefore upheld the Advance Ruling declining exemption.Exemption under SI.No.12 (Heading 9963) is not available; the leasing of the hostel is taxable.End-use condition for exemption - interpretation of exemption notifications strictly against assessee - burden of proof on assessee to demonstrate applicability of exemption - exclusion where residential dwelling is rented to a registered person (amendment) - The claimed exemption based on end-use and identity of the recipient is not available where the recipient is a commercial/registered entity that does not use the premises as its own residence. - HELD THAT: - The notification conditions exemption on both the nature of the property (a residential dwelling) and its use 'as residence' by the recipient. Here the lessee (a management services company) did not use the premises as its residence but obtained it for commercial purposes and sub letting. The Authority applied the principle that tax exemptions are to be interpreted strictly and ambiguous or conditional exemptions cannot be extended in favour of the assessee. The subsequent amendment to the notification (excluding cases where the residential dwelling is rented to a registered person) underscores the restricted scope of the exemption. On these grounds the Appellate Authority found that the end use and recipient conditions for exemption were not satisfied and confirmed the Advance Ruling.Exemption is denied because the property is leased to a commercial/registered entity and not used as the lessee's own residence.Final Conclusion: The Appellate Authority affirms the Advance Ruling: the appellant's lease of the hostel premises does not qualify as 'renting of residential dwelling for use as residence' and the claimed exemption is refused; the lease rentals are therefore subject to GST.

Summary order. Notice issued returnable three weeks; dasti service additionally permitted.

Services by way of renting of residential dwelling for use as residence - strict interpretation of exemption notification - burden on assessee to prove applicability of exemption - ordinary/popular meaning of 'residential dwelling' - distinction between residential dwelling and places for temporary stay (hotel, guest house, lodge)Services by way of renting of residential dwelling for use as residence - ordinary/popular meaning of 'residential dwelling' - burden on assessee to prove applicability of exemption - Leasing of residential premises as a hostel to students and working professionals falls within Entry 13 of Notification No.9/2017 (services by way of renting of residential dwelling for use as residence) and is eligible for exemption under the notification. - HELD THAT: - The Court applied settled principles that exemption notifications are to be strictly construed and the assessee bears the burden of proving applicability, but where terminology is undefined it must be given its ordinary trade parlance meaning. The expression 'residential dwelling' is not defined in the Act; authoritative administrative clarification and dictionary meanings indicate that it denotes residential accommodation and excludes establishments meant for temporary stay such as hotels, motels, guest houses or lodges. The hostel in question, used by students and working professionals for sleeping, eating and study for periods ranging from three to twelve months, falls within the ordinary meaning of 'residence' and 'dwelling'. The notification requires that a residential dwelling be rented and used as a residence; it does not impose a condition that the lessee personally use the premises as a residence. Regulatory classifications (trade licence, commercial registration) do not alter the character of the accommodation for purposes of the exemption. The Appellate Authority's characterization of the premises as 'sociable accommodation' and its conclusion that the lessee must itself use the premises were held to be untenable. Applying these determinations, the Court concluded that the petitioner's leasing of the property as a hostel satisfies Entry 13 and is exempt under Notification No.9/2017. [Paras 13, 14, 15, 16, 17]The order of AAAR Karnataka is quashed and the petitioner is entitled to the exemption under Entry 13 of Notification No.9/2017 for leasing the premises as a hostel.Final Conclusion: Writ petition allowed; leasing of the petitioner's residential premises as a hostel to students and working professionals is covered by Entry 13 of Notification No.9/2017 and the petitioner is entitled to the exemption.

Services by way of renting of residential dwelling for use as residence - Services by a hotel, inn, guest house, club or campsite for residential or lodging purposes - Interpretation of the phrase 'residential dwelling' - CBIC Circular No. 32/06/2018-GST - treatment of hostel accommodationServices by way of renting of residential dwelling for use as residence - Interpretation of the phrase 'residential dwelling' - Whether the applicant's hostel accommodation qualifies as 'renting of residential dwelling for use as residence' and is therefore exempt under Serial Number 12 of Notification No. 12/2017-C.T.(Rate). - HELD THAT: - The Authority analysed the factual features of the hostel - rooms allotted on a sharing basis to students, absence of individual kitchen facilities in allotted rooms, food provided through a mess, restrictions on family/guest stay, and tenure tied to the period of training - and contrasted these with commonly understood attributes of a residential dwelling (freedom to have family/guests, self-contained kitchen and amenities, tenant-like rights). On this basis the Authority found that the common parlance test for 'residential dwelling' is not satisfied by the hostel accommodation in the present facts. Reliance on cases and dictionary meanings was considered but the Authority emphasised the factual distinctions which lead to the conclusion that the service does not fall within the scope of Serial Number 12. [Paras 5]The applicant's hostel accommodation does not qualify as 'renting of residential dwelling for use as residence' and Serial Number 12 of Notification No.12/2017-C.T.(Rate) is not applicable.Services by a hotel, inn, guest house, club or campsite for residential or lodging purposes - CBIC Circular No. 32/06/2018-GST - treatment of hostel accommodation - Whether the applicant's hostel accommodation is exempt under Serial Number 14 of Notification No.12/2017-C.T.(Rate) (i.e., services by hotels/inns/guest houses/etc. for residential or lodging purposes where declared tariff/value per unit of accommodation is below Rs.1000 per day). - HELD THAT: - The Authority observed that Entry No. 14 is user based and covers services by establishments 'by whatever name called' for residential or lodging purposes if the declared tariff or value of a unit of accommodation is below the prescribed threshold. The term 'hostel' being omitted specifically does not preclude coverage because 'by whatever name called' captures such arrangements. The applicant charged a nominal lump sum which, when reckoned per student per day, is below the threshold of Rs.1000; the Authority further placed weight on the CBIC clarification (Circular No.32/06/2018-GST) which expressly treats hostel accommodation (where the declared tariff per unit is below the threshold) as falling under the Entry No.14 exemption. Having considered the factual material and the circular, the Authority held that the applicant's hostel service satisfies the conditions of Entry No.14 and is therefore exempt. [Paras 5]The applicant's hostel accommodation is exempt under Serial Number 14 of Notification No.12/2017-C.T.(Rate) as the per unit/day value is below the specified threshold.Final Conclusion: The Authority answered the reference in the affirmative: the hostel services provided by the applicant are exempt from GST, and the exemption is to be claimed under Serial Number 14 of Notification No.12/2017-C.T.(Rate).

Services by way of renting of residential dwelling for use as residence - residential dwelling - for use as residence - exemption under Entry No. 13 of Notification No. 09/2017-IT (Rate) - advance ruling time limit under Section 98(6) - manual filing under Rule 107A and transitional filing on common portal - irregularity in procedure versus jurisdictional invalidity - locus of applicant as part of a group of lessorsServices by way of renting of residential dwelling for use as residence - residential dwelling - for use as residence - exemption under Entry No. 13 of Notification No. 09/2017-IT (Rate) - Renting/leasing of the impugned property by the lessors is not exempt under Entry No.13 of Notification No.09/2017-IT (Rate). - HELD THAT: - The impugned property was constructed and sanctioned as a hostel building and, on the common understanding of terms, is an establishment providing sociable/institutional accommodation rather than a 'residential dwelling' treated as a home. The explanatory notes to the classification indicate that rental services in respect of residential properties are distinct from accommodation services provided by hotels, motels, hostels etc. Even assuming the property to be a residential dwelling, the exemption applies only where the recipient uses the dwelling 'for use as residence'. Here the lessee (M/s DTwelve Spaces Pvt. Ltd.) is using the leased premises to conduct a business of providing paying guest accommodation to students; the recipient is not using the premises as its own residence. On both counts - (i) the building's character as a hostel rather than a residential dwelling and (ii) the lessee's use for operating a paying guest business rather than using the dwelling as residence - the renting activity is outside Entry No.13 and taxable under GST. [Paras 11, 12, 13]The renting/leasing is not eligible for exemption under Sl. No.13 of Notification No.09/2017-IT (Rate).Manual filing under Rule 107A and transitional filing on common portal - The date of manual filing is the operative date of application for advance ruling in the circumstances of this case; online filing date cannot be treated as the date of application where transitional/manual filing was applicable. - HELD THAT: - Rules 104 and 106 require filing on the common portal but Rule 107A (inserted by notification) and Circular No.25/25/2017 clarified that until the advance ruling module is available, manual filing in the prescribed form is permissible and the fee is to be paid online. Given the unavailability of the requisite forms on the portal and statutory transitional provisions, the Authority correctly treated the manual submission date as the date of filing. [Paras 14]The manual filing date is correctly adopted as the date of application.Advance ruling time limit under Section 98(6) - irregularity in procedure versus jurisdictional invalidity - Delay by the AAR in pronouncing the advance ruling beyond ninety days does not render the ruling null and void; it is an irregularity remediable by appeal. - HELD THAT: - Section 98(6) prescribes a ninety day period to pronounce an advance ruling. Non compliance with that timeline in the present case constitutes procedural irregularity. An order passed by a competent authority within jurisdiction, though delayed, is not deprived of efficacy by a collateral or incidental attack; the appropriate remedy is to challenge the order in a duly constituted appellate forum. Only orders passed without jurisdiction would be void ab initio. [Paras 15]The belated pronouncement does not invalidate the AAR's ruling; it remains subject to challenge by appeal, but is not null and void for delay.Locus of applicant as part of a group of lessors - The AAR's observation that the applicant in his individual capacity was not effecting the supply was beyond the question before it and is expunged; the applicant acted as part of a group of lessors. - HELD THAT: - The transaction before the Authority was the collective lease by five co owners to the lessee. The applicant applied in his capacity as one of the lessors forming part of that group. The impugned AAR's paragraph suggesting the individual applicant did not effect supply is extraneous to the ruling sought and is accordingly expunged. The substantive question remained whether the lessors' leasing was exempt under Entry No.13, which has been addressed on its merits. [Paras 16]The AAR's extraneous observation in Para 8(b) is expunged; the applicant is part of the group of lessors and the collective lease was adjudicated on merits.Final Conclusion: The Appellate Authority for Advance Ruling dismissed the appeal and upheld AAR Karnataka's Advance Ruling No. KAR/ADRG 17/2020 dated 23-03-2020: the leased premises are not covered by the exemption in Entry No.13 of Notification No.09/2017-IT (Rate), the manual filing date was correctly adopted, the delay in pronouncing the ruling does not render it void, and an extraneous observation regarding the applicant's individual supply was expunged.