Question ID : 44634

GST on hostel services provided by educatinoal trust to its students

Is GST applicable on hostel services provided by educatinoal trust to its students @ 12% when hostel charges are less than Rs. 1,000/- per day per bed ?? Further can we consider imparting of education and hostel charges as composite supply or do we need to consider it as mixed supply ??

Answer ID : 85383

No GST on Woman Hostels, Madras HC. Justice Krishnan Ramaswamy, setting aside the GST demand notice, said: "While adverting to the imposition of GST on hostel accommodation, it has to be looked into as to whether the inmates of the hostel rooms are using the premises as their residential dwelling or commercial purpose since renting of residential unit attracts GST only when it is rented for commercial purpose." Since the end-use of the property is for residential purposes, it would not attract GST, he ruled.

Answer ID : 85398

W.e.f. 18th July 2022 the exemption for room accommodation per day per unit less than Rs. 1,000 has been done away with. However,Services by way of renting of residential dwelling for use as residence except when given to a GST Registered person continues to be exempted. Thereby the educational trust in the instant case can avail the benefit of this exemption and do not collect GST from its students. Further education along with accomodation would amount to composite Supply of education Services and thereby eligible for exemption under entry 66 to Notification 12/2017-CT(R). Further the following cases can be relied upon to avail the GST exemption; Taghar vasuder Ambarish- Karnataka Highe Court Thai Mookambika Ladies Hostels - Madras High Court .

---