GST on Hostel accommodation

[Guest]

Hiiiii all

Whether GST is to be paid on Hostel facility??

Hostel rent is 7000/- per month

Since it is less than 1000/- per month will it come under renting for residential dwelling purpose??

[Rajagopalan Ranganathan]

Sir,

Hostel facility will be treated as commercial project. hence the rent collected is liable to gst.

[Guest]

Sir

Thanks for replying,I need one more clarification in this regard as we are not doing any commercial activities in hostel and using only as residential dwelling will it be still considered as commercial building???

[Rajagopalan Ranganathan]

Sir,

If you accommodate more than one individual for rent in a building it will be treated as renting for residential purpose. If you accommodate only family per one dwelling place then it will be treated as renting for residential purpose.

[DR.MARIAPPAN GOVINDARAJAN]

Whether hostel facility may be said for dwelling purpose?

[rajkumar shukla]

Is it a hostel provided by educational institution running a recognized course?

[Ganeshan Kalyani]

If hostel service provided by educational institution then GST is not applicable.

AI Summary

GST on hostel accommodation generally applies, but hostel services by educational institutions may be exempt. Hostel accommodation is generally characterised as a commercial supply and liable to GST; multi-occupant hostel arrangements are treated commercially rather than as renting for residential purposes. Where hostel services are provided by an educational institution in connection with recognized courses, contributors indicated that GST is not applicable to such institutional hostel services.