GST on hostel services

[Tushar More]

An individual providing Lodging Facilities to students for ₹ 5000/- p.m. Whether GST will be applicable or not. Also whether GST is applicable or not if he provides both Lodging and Food to students.

Please clarify whether any exemption is available on this. Please note that the thresold has been crossed.

[Rajagopalan Ranganathan]

Sir,

The rate of CGST is 9% in respect of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent vide Sl. No. 7 (vi) of Notification No. 11/2017-Central Tax (Rate) dated 2806.2017. if you separately charge for food then it will also be liable to gst @9%. If charges for food is included in the rent collected then no separate gst is payable.

[KASTURI SETHI]

It is not hostel. It is PG and commercial. Hence chargeable to GST as advised by Sh.Ranganathan Sir.

[Tushar More]

Sir, under GST, "Room or unit accommodation services provided by Hostels, Camps, Paying Guest etc" has been covered under SAC Code 996322 taxable at the rate of 18%.

So, since my charges per unit of accomodation is less than 1000/- per day, can i treat it as exempt service under SAC 9963 i.e., "services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below 1000 rupees per day or equivalent. Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.' by charging for fooding seperately.

My query is since hotels are meant for temporary stay, unlike hostels. Can i claim exemption is hostel services by showing it under SAC 9963. Also, since a seperate SAC is available for hostel services i.e. SAC 996322, is it right to do so.

[KASTURI SETHI]

Why do you call it hostel ? See the definition of Hostel. Yours is paying guest house. Exemption possible only both food and renting should be separate. Other conditions have to be looked into.

AI Summary

GST on lodging services: classification as hostel or paying guest and separate food charges determine taxability and applicable rate. Whether GST applies to student lodging and accompanying food: accommodation treated as commercial lodging (hotel/guest house/PG) is subject to GST at rates keyed to the declared tariff per unit per day; separately charged food is liable to GST, while bundled food included in the lodging charge is not separately taxed. Classification as hostel versus paying guest affects exemption eligibility, and any lower tariff exemption requires separate charging of food and fulfilling other conditions before it can be claimed.