GST Applicability on Hostel Accommodations

This query is : Resolved

Gaurav Vij (Querist)
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19 July 2022 As per recent notification from GST, the hotels are required to charge 12% if the room rent is less than 1000 per day.

https://www.cnbctv18.com/economy/gst-council-meet-hotel-rooms-below-rs-1000-per-day-to-attract-12-percent-tax-13971862.htm

Scenario 1 - In case, we bill directly to Students or Working professional.
Property type - Residential
a. Does this apply to Hostels as well?
b. If No, what HSN/SAC code to be used for Rental invoices

Scenario 2 - In case, we bill directly to Students or Working professional.
Property type - Commercial
a. Does this apply to Hostels as well?
b. If No, what HSN/SAC code to be used for Rental invoices

Scenario 3 - In case, we bill directly to Private Limited companies who pay for their employees. Property type - Residential
a. What GST percentage we need to charge to the companies 12% or 18%.
b. Will this be exempt in this case?
c. What will be HSN/SAC code to be used.

Scenario 4 - In case, we bill directly to Private Limited companies who pay for their employees. Property type - Commercial
a. What GST percentage we need to charge to the companies 12% or 18%.
b. Will this be exempt in this case?
c. What will be HSN/SAC code to be used.

I would request your expert thoughts and directions on above scenarios

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 July 2022 1 No GST applicable in such a case.
2 GST applicable being comercial property.
3 18% GST applicable
4 18% GST applicable.

Gaurav Vij

Gaurav Vij (Querist)
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20 July 2022 Thanks R Seetharaman sir, In that case what should be the HSN/SAC Code to be used for all of the above 4 scenarios.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 July 2022 SAC (Service Accounting Code) for rental & leasing falls under heading 9972. For rental or leasing services involving own or leased residential property fall under SAC code 997211.