Applicability of gst on hostel taken on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2017 kindly clarify the applicability of GST on the following context:-

1. ours is a Section 8 company and State Government Undertaking.
2. Providing MAPCET (MP Counsel of Employment & Training) Sponsored Residential Training courses to SC/ST Students.
3. we don't have our own hostel so taken on Rental basis and provide this facility to students.
4. Hostel rent including Mess Charges is reimbused by MAPCET.
5. The Owner of Hostel raises a bill to us for this.

Kindly advice on the applicability of GST on the rent paid by us for the hostel to be used for the ST/SC Students obtaining vocation training udner the MP State Government sponsored scheme. If GST is applicable at which rate? whether there is a diffierent rates on Mess and Lodging Boarding and can we also impose GST as part of their fees which is to be paid by state Government agency MAPCET (MP Counsel of Employment & Training).

Thanking You,

GST Pitara

GST Pitara (Expert)
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18 July 2017 Room or unit accommodation services for students in student residences has SAC- 996321 and applicable GST rate on such services is 18%.
Also, Services provided in Canteen and other similar establishments has SAC-996333 and applicable GST rate on such services is also 18%.
So the hostel owner and mess service provider will charge you GST at 18% which can be claimed from MAPCET.

Service provided by you to the MAPCET is covered under one of the following:-
1. Secondary education services, technical and vocational having SAC- 999232 or,
2. Higher education services, vocational having SAC- 999243 or,
3. Other education and training services having SAC- 999294.

Applicable GST rate on all such services is 18%. So you are required to charge GST at 18% on the fees of such training.