GST Applicability on Hostel Accommodations
This query is : Resolved
19 July 2022
As per recent notification from GST, the hotels are required to charge 12% if the room rent is less than 1000 per day.
https://www.cnbctv18.com/economy/gst-council-meet-hotel-rooms-below-rs-1000-per-day-to-attract-12-percent-tax-13971862.htm
Scenario 1 - In case, we bill directly to Students or Working professional.
Property type - Residential
a. Does this apply to Hostels as well?
b. If No, what HSN/SAC code to be used for Rental invoices
Scenario 2 - In case, we bill directly to Students or Working professional.
Property type - Commercial
a. Does this apply to Hostels as well?
b. If No, what HSN/SAC code to be used for Rental invoices
Scenario 3 - In case, we bill directly to Private Limited companies who pay for their employees. Property type - Residential
a. What GST percentage we need to charge to the companies 12% or 18%.
b. Will this be exempt in this case?
c. What will be HSN/SAC code to be used.
Scenario 4 - In case, we bill directly to Private Limited companies who pay for their employees. Property type - Commercial
a. What GST percentage we need to charge to the companies 12% or 18%.
b. Will this be exempt in this case?
c. What will be HSN/SAC code to be used.
I would request your expert thoughts and directions on above scenarios
https://www.cnbctv18.com/economy/gst-council-meet-hotel-rooms-below-rs-1000-per-day-to-attract-12-percent-tax-13971862.htm
Scenario 1 - In case, we bill directly to Students or Working professional.
Property type - Residential
a. Does this apply to Hostels as well?
b. If No, what HSN/SAC code to be used for Rental invoices
Scenario 2 - In case, we bill directly to Students or Working professional.
Property type - Commercial
a. Does this apply to Hostels as well?
b. If No, what HSN/SAC code to be used for Rental invoices
Scenario 3 - In case, we bill directly to Private Limited companies who pay for their employees. Property type - Residential
a. What GST percentage we need to charge to the companies 12% or 18%.
b. Will this be exempt in this case?
c. What will be HSN/SAC code to be used.
Scenario 4 - In case, we bill directly to Private Limited companies who pay for their employees. Property type - Commercial
a. What GST percentage we need to charge to the companies 12% or 18%.
b. Will this be exempt in this case?
c. What will be HSN/SAC code to be used.
I would request your expert thoughts and directions on above scenarios
19 July 2022
1 No GST applicable in such a case.
2 GST applicable being comercial property.
3 18% GST applicable
4 18% GST applicable.
2 GST applicable being comercial property.
3 18% GST applicable
4 18% GST applicable.
20 July 2022
Thanks R Seetharaman sir, In that case what should be the HSN/SAC Code to be used for all of the above 4 scenarios.
20 July 2022
SAC (Service Accounting Code) for rental & leasing falls under heading 9972. For rental or leasing services involving own or leased residential property fall under SAC code 997211.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Multiple trade mark
- Copyright software
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- When TDS on GST applied
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
