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

Debate on GST Applicability to Hostel Accommodation: Commercial vs. Residential Use and Educational Exemption Considerations. A discussion on whether Goods and Services Tax (GST) applies to hostel accommodation with a rent of 7000/- per month. One participant states that hostel facilities are considered commercial projects, thus subject to GST. Another clarifies that if more than one individual is accommodated, it may be treated as renting for residential purposes. Further inquiries question if the hostel is part of an educational institution, which would exempt it from GST. The conversation explores whether the use of the hostel for residential purposes affects its tax status.