Gst on hostel services .. kindly advice

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This query is : Resolved

Rahul (Querist)

16 July 2019 One individual wants to run a private hostel to provide mainly long term accomodation for student and even working class.

The entire apartment would be hired from the landlord for this purpose on rental basis and then would be renovated to make further partitions to extend the no. of bedspace in a room.

With the accomodation being the primary service, the said service is also supported by breakfast and dinner and facilities like wi-fi.

Charges would be around Rs. 5000/-p.m and total inmates would be around 100.

So, annually projected turnover at 75% occupancy level would be around Rs. 45,00,000/-

My doubt here is can we claim the exemption of Rs.1000/- per day in gst as available to hotels, inns etc....

Does this commercial hostel qualify for such exemption.....? Can we just pay 5% tax on value of supply of food supplied without itc or should we pay 18% ?

Please guide and advice

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 July 2019 You can claim the exemption of Rs.1000/- per day in gst towards room rent as available to hotels, inns etc....
Just pay 5% tax on value of supply of food supplied without itc.

Rahul

Rahul (Querist)

16 July 2019 Thank You Sir for the kind advice..

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