Rent paid for paying guest (PG) and hostel accommodations, which are not like residential dwellings, would attract 12 per cent goods and services tax (GST), the authority for advance rulings (AAR) in Karnataka has ruled.
The AAR, while hearing a case of Srisai Luxurious Stay LLP, said that only rent for residential dwellings would qualify for GST exemption.
There was earlier no GST on residential dwellings, as well as on hotels, inns, or guest houses where the rent is up to Rs 1,000 a day. However, the government issued a notification on July 13, 2002 to lift the GST exemption for hotels and guest houses, where rent is up to Rs 1,000 a day. The notification was effective from July 18 that year.
Read more at : Business-Standard
Share this content: