GST on Hostel accommodatio

[PRAVEEN KUMAR]

Dear Sir

I am the owner of a building having 19 rooms. I am filing GST return under Hotel accommodations (HSN 996311) till June 2022. From July onward the rooms are occupying student and employees for accommodation only (monthly rent is 2500/- per person). My query is can i change my GSTN service to Hostel accommodation (HSN 996332). How it is possible and GST is applicable on Hostel accommodation. Kindly advise me. Regards Praveen

[Ganeshan Kalyani]

Sir, refer issue id 118081 wherein a reference to HC order is given where it is ruled that hostel service is exempt from GST.

[Kunal Agrawal]

If the building is residential and not commercial and consideration is charged per month for accommodation then benefit of exemption notification can be claimed.

[KASTURI SETHI]

You cannot get any sort of benefit /exemption by changing classification. It is a commercial activity. It is taxable under FCM.

[AdvMurari Kumar]

I concur with Kasturi Sir,

[Shilpi Jain]

The period of agreement with the students would be relevant to decide whether exemption is applicable. This being in line with the decision of the Karnataka HC in the case of Taghar Vasudev - 2022 (2) TMI 780 - KARNATAKA HIGH COURT.

AI Summary

GST on hostel accommodation: classification and duration of tenancy determine whether exemption applies or treatment as taxable commercial supply. Exemption may be available where premises retain a residential character and consideration is charged as monthly rent for accommodation, with the duration and nature of the agreement material to that assessment. A change of service classification alone does not automatically entitle the supplier to exemption; taxable treatment as a commercial supply under Furnishing of Accommodation may apply where the activity is commercial or the factual matrix displaces a residential-tenancy character.