The recent order of Bengaluru bench of the Authority for Advance Ruling holding that paying guest (PG) accommodations and hostel attract 12% GST as they not options for permanent residence is likely to push up rentals.
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“On average, a PG in the city has 20-30 rooms and the rent paid by the PW owner to the landlord for such a place varies between Rs. 2-4 lakh per month. If GST is to be paid by the owners on all PG rents received, then the rents will see a rise anywhere between 10-12%. This will make it living in a PG costlier for the end consumer by Rs. 1000 at least, “said Sampat Althur, president of the Bengaluru PG owners onwers.
Source: The Times of India
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