APPLICABILITYOF GST ON STUDENT HOSTEL FEES
This query is : Resolved
Quick Summary
14 April 2026
MY CLIENT IS RUNNING A STUDENT HOSTEL AND CHARGE FOR STAY ALON WITH FOOD HIS RECEIPTS ARE MORE THAN 1 CR PLEASE GUIDE US IS GST REGISTRATION IS MANDATORY AND THESE SERVICES ARE EXEMPT FROM GST
14 April 2026
GST registration is NOT mandatory as long as the services meet specific exemption criteria, even if the total turnover exceeds ₹1 crore. Under Section 23(1) of the CGST Act, 2017, anyone providing services that are wholly exempt from tax is not required to register for GST.
14 April 2026
Based on recent guidelines effective from July 15, 2024, hostel services are exempt from GST if both of the following conditions are met:
Monthly Charge: The total value of supply (including food and other bundled services) must be less than or equal to ₹20,000 per person per month.
Duration of Stay: The accommodation must be supplied for a minimum continuous period of 90 days.
Monthly Charge: The total value of supply (including food and other bundled services) must be less than or equal to ₹20,000 per person per month.
Duration of Stay: The accommodation must be supplied for a minimum continuous period of 90 days.
14 April 2026
Sir, if he has already GST registered then it is mandatory to show hostal receipts as exempted in GST
14 April 2026
Yes, if the conditions are satisfied.
14 November 2026
Agree the stay can be exempt. The food part needs attention.
The exemption
• Entry 12A of Notf 12/2017-CT(R) (inserted by Notf 04/2024-CT(R), effective 15 July 2024): accommodation services of up to Rs 20,000 per person per month, provided for a continuous period of at least 90 days, are exempt. Student hostels usually qualify.
Food
• One package fee (stay + meals): treat it as a composite supply with accommodation as the principal supply. If the accommodation is exempt, the whole package is exempt. Keep the per-head monthly charge within Rs 20,000.
• Food billed separately or optional: it is a separate supply of food, taxable at 5% (without ITC).
Registration
• Only exempt supplies: no registration needed (Sec 23), even above Rs 1 crore.
• Separately charged food or other taxable services (laundry, transport) above Rs 20 lakh (Rs 10 lakh in special-category states) in total turnover: registration needed. Exempt turnover counts in aggregate turnover.
Keep
• Admission forms or agreements showing the stay period (90+ days) and monthly charge per student.
The exemption
• Entry 12A of Notf 12/2017-CT(R) (inserted by Notf 04/2024-CT(R), effective 15 July 2024): accommodation services of up to Rs 20,000 per person per month, provided for a continuous period of at least 90 days, are exempt. Student hostels usually qualify.
Food
• One package fee (stay + meals): treat it as a composite supply with accommodation as the principal supply. If the accommodation is exempt, the whole package is exempt. Keep the per-head monthly charge within Rs 20,000.
• Food billed separately or optional: it is a separate supply of food, taxable at 5% (without ITC).
Registration
• Only exempt supplies: no registration needed (Sec 23), even above Rs 1 crore.
• Separately charged food or other taxable services (laundry, transport) above Rs 20 lakh (Rs 10 lakh in special-category states) in total turnover: registration needed. Exempt turnover counts in aggregate turnover.
Keep
• Admission forms or agreements showing the stay period (90+ days) and monthly charge per student.
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