Gst on hostels

This query is : Resolved

Dr. Anshu Bansal Gupta (Querist)
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05 March 2019 Dear Sir/Madam,

Facts of the Case: An individual is running hostels and showing the same as Profits & Gains from Business and Profession under Income Tax Act, by preparing Profit & Loss Account.

The total rooms are 125. In 70 rooms 3 persons stay and in remaining rooms 2 persons stay. The total collection is 2.40 Crores.

Question: Now will GST be applicable. What is the basis of deciding whether GST is to be charged or not. Further, the limit of 1,000/- per room is related to this in which sense.

Regards

Rajesh Kumar

Rajesh Kumar (Expert)
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05 March 2019 It shall not attract GST. Hostel is residential property, and renting of residential property is exempted. Even in short term accommodation, exemption is available if the daily tariff is less than Rs. 1000/-. Thus there shall be no GST on hostel accommodation. Fooding services may attract GST.