GST taxability on hostel services provided to foreign university students

[TEAM GST]

Dear Experts, Seek your opinion on the GST taxability of hostel accommodation services provided by an Indian University to students of a foreign university who are staying in India.

The students fulfil the following conditions:

• The accommodation is provided for a minimum continuous period of 90 days; and
• The hostel accommodation charges do not exceed Rs. 20,000 per person per month.

In this regard, we would appreciate your views on the GST treatment for the following periods:

1. Period prior to 15 July 2024: Whether the benefit of exemption is available for the period from 1 July 2017 to 14 July 2024 in view of the regularization of GST liability on an "as is where is" basis for qualifying accommodation services under Circular No. 228/22/2024-GST dated 15 July 2024.
2. Period from 15 July 2024 onwards: Whether the hostel accommodation services qualify for exemption under Notification No. 4/2024-Central Tax (Rate) dated 12 July 2024, subject to fulfilment of the prescribed conditions relating to the monthly value of accommodation and minimum continuous period of stay.

particularly considering the fact that the recipients are students of a foreign university, while the hostel accommodation is provided by an Indian University in India.

AI Summary

Hostel accommodation exemption can extend to foreign-university students where qualifying stays meet prescribed value and duration conditions.
GST exemption for hostel accommodation supplied in India to students of a foreign university is considered available where the supply qualifies as accommodation service and the prescribed value and continuous-stay conditions are met. From 15 July 2024, exemption is considered applicable where charges do not exceed Rs. 20,000 per person per month and the stay is for at least 90 continuous days. Foreign-university status does not, by itself, disqualify the supply. Compliance depends on the service character, correct valuation, documented continuous stay, and absence of arrangements altering the supply's character.