Question ID :
44786
GST on food services given in hostel and its clubbing with accomodation
My question is with respect to whether food, internet services are provided along with accommodation outside educational premise by a private PG service are exempt or not , after the the decision of 53rd council meeting where accomodation services are exempt when stay is more than 90 days and rent is below 20,000 per month.
Since only 'accomodation services' words are used in the notification under entry 12A and the chapter within notification that has written is chapter heading 9963 which has a heading accommodation, food ,beverages.
Whether PG services provided along with food, internet services is considered exempt services or it is considered as a composite supply and be liable to GST since,only accomodation services exempt.
Posted by
YAGNESH
on
Jan 29, 2025
Filed Under
GST
I think a very wide interpretation be placed on " accommodation service" so as to include internet also in view of the current life style.
Posted by
SIVADAS CHETTOOR on
Feb 06, 2025
Answer ID :
85663
As per the 53rd GST Council Meeting, accommodation services provided for a continuous period of 90 days or more, where the value of supply does not exceed ?20,000 per month per person, are exempt from GST?.
However, in your case, the PG service includes food and internet services. Since only "accommodation services" have been explicitly exempted under the new notification, additional services such as food and internet may not qualify under the exemption and could be considered a composite supply under GST.
Implications:
If accommodation is the principal supply and food/internet is incidental, the entire supply might still be exempt.
If food and internet are charged separately or not incidental, they might attract GST.
Chapter Heading 9963, which includes accommodation, food, and beverages, does not explicitly state exemption for the entire bundle.
For a clear position, a specific advance ruling may be sought from the GST authorities.
Posted by
CA. JHA SHANKAR KUMAR on
Feb 11, 2025