GST DAILY – 166

Exemption not available on hostel services due to temporary nature and specific licenses, AAR distinguished it from residential dwelling

The Tamilnadu AAR in the case of ARPUTHA WOMENS HOSTEL, decided on 5-9-2023

✔️ Where assessee provided boarding and lodging with ancillary services, charging single fee, it did not qualify for exemption under GST Entry No. 12 of Exemption Notification No. 12/2017-CT (Rate) dated 28-6-2017 for renting of residential dwelling for use as residence.

✔️ Where assessee offered bundled accommodation and food, incidental food service didn’t confer exemption for entire activity, instead, bundled services form composite supply taxed at rate of main service.

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