Hotel accomodation vs residential dwellings

[Nikhil Virkar]

If residential hotel booked thru leave and license agreement for 2 years for 10 rooms to serve purpose as Bachlor's accomodation by registered person. Can this be treated as renting of residential dwellings and liable to tax under RCM? whether ITC is allowed if required to be paid under RCM?

[Amit Agrawal]

Hotel accommodation and residential dwellings are two different things, as understood in common parlance as well as gst law.

On subject transaction, GST is not payable by registered recipient under RCM, even if residential hotel booked thru leave and license agreement for 2 years for 10 rooms to serve purpose as Bachelors' accommodations.

However, "the hotel" needs to charge gst under forward charge if it is registered 'or' is liable to be registered under GST.

P.S. residential hostel and hotel are two different things. There are contrary views & controversy, as far as residential hostel is concerned.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

Hotel accommodation is not 'residential' accommodation. No question of RCM. I agree with Sh.Amit Agrawal Sir.

AI Summary

Hotel accommodation not treated as residential dwelling; no RCM on recipient, supplier must charge GST. Hotel accommodation supplied under a leave and license for extended bachelor lodging is not a residential dwelling for GST purposes and is therefore not taxable under the reverse charge mechanism on the registered recipient; the supplier (hotel) must charge GST under the forward charge if registered or liable to registration.