GST Liability on Hostel
priyanshu shroti (42 Points)
24 March 2025
If I provide hostel service to students and my turnover exceeds 20 Lakh what will be the gst liability
2 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(6992 Points)
Replied 24 March 2025
CA Rashmi Gandhi
(Chartered Accountant)
(86432 Points)
Replied 25 March 2025
1. Applicability of GST Registration
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Threshold Limit: As per Section 22 of the CGST Act, a person must register for GST if their aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category states).
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Since your hostel service turnover exceeds ₹20 lakh, GST registration is mandatory.
2. Taxability of Hostel Accommodation
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Exemption for Low-Tariff Hostel Services:
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Hostel accommodation is exempt from GST if the declared tariff is below ₹1,000 per day per unit.
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If the tariff exceeds ₹1,000 per day, GST is applicable at 12% under SAC 9963 (Accommodation Services).
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Recent Exemption for Long-Term Hostel Stays:
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As per Circular No. 228/22-GST (Fifteen July 24), hostel accommodation provided for at least 90 continuous days at a rate of ₹20 thousand or less per person per month is exempt from GST.
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If your hostel charges exceed ₹20,000 per month or the stay is less than 90 days, GST will be applicable.
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3. GST on Hostel Mess Fees (Food Services)
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If the mess is operated by the hostel itself, food supplied to students is taxable at 5% GST without ITC.
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If mess services are outsourced, the vendor is responsible for GST.
4. Conclusion: Your GST Liability
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If accommodation is below ₹1 thousand/day or ₹20 thousand for 90+ days → Exempt from GST.
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If above these limits → 12% GST applicable.
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Mess fees (food supply) → 5% GST without ITC.
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