<h1>Leasing residential premises as hostels for students and professionals is exempt from GST under the residential use exemption.</h1> Leasing residential premises to an entity that uses the property as a hostel for students and working professionals qualifies for the GST exemption for residential accommodation, because the ultimate use remains residential and levying GST would be passed on to occupants and defeat the legislative intent of the exemption. Administrative rulings had denied exemption by classifying the supply as non residential, but higher courts treated the leasing as exempt where the property continued to function as long term residential accommodation.