GST on hostel services

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This discussion clarifies the GST implications for private hostel services provided to students. While food and transportation may attract a 5% GST, lodging services might be exempt if the daily charge is below £1000. The applicability of GST also depends on whether the total turnover exceeds £20 lakh and the nature of the supply (composite or mixed), with lodging often considered the principal supply.

Bikram Sahoo

Bikram Sahoo (Querist)

16 February 2021 Dear Sir,
We are providing private hostel services for students studying in Allen Institute and the monthly fees is Rs, 12000/- which includes lodging, fooding, transportation. Whether we have to pay GST or are exempted.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 February 2021 5% GST applicable on food and transportation. GST not applicable on lodging as daily charge will be less than 1000 per day.
GST applicable only if total of such services exceed 20 lacs.

CA Altamush Zafar

CA Altamush Zafar (Expert)

16 February 2021 Concept of composite supply and mixed supply needs to be kept in mind while determining tax rate.

Lekhraj sood

Lekhraj sood (Expert)

18 February 2021 In my view this will be composite supply where hostel lodging will be principal supply.GST will be chargeable if registered under GST.

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