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KARNATAKA AAR: HOSTELS ARE NOT RESIDENTIAL DWELLING UNITS NO GST EXEMPTION
The Daily Guardian
|August 01, 2023
The Karnataka Authority of Advance Ruling, AAR in the case observed and has held that the PG or the Hostel Rent paid by inhabitants does not qualify for GST exemption as the services are not akin to renting a residential dwelling for use as a residence.
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The bench comprising of M.P. Ravi Prasad and Kiran Reddy T. in the case observed and has stated that GST on reverse charge will be applicable on the rental to be paid to the landowners.
Therefore, the applicant is an LLP and is in the business of providing guest accommodation or hostel services and are akin to guest house and lodging services.
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