Is GST applicable on rent from Hostel given on rental to government for student residence
This query is : Resolved
29 December 2022
Case 1 ) Mr A had given his hostel premises to government for student residence on rental basis.
Government paid him Rs 100 per day per student. No of student is 100. Means 1 student 100 *365 = 36500 & 36500 * 100 = 3650000. His T O will be exceeds Rs 20 lakh limit under GST .
Then Mr A needs to registered himself under GST & What is rate for GST ?
Case 2) Mr A had given his hostel premises directly to student residence on rental basis. Student paid him RS 100 per day per student individually. No of student is 100. Means 1 student 100 *365 = 36500 & 36500 * 100 = 3650000. His T O will be exceeds Rs 20 lakh limit under GST . Then Mr A needs to registered himself under GST & What is rate for GST ?
Sir please explain
Government paid him Rs 100 per day per student. No of student is 100. Means 1 student 100 *365 = 36500 & 36500 * 100 = 3650000. His T O will be exceeds Rs 20 lakh limit under GST .
Then Mr A needs to registered himself under GST & What is rate for GST ?
Case 2) Mr A had given his hostel premises directly to student residence on rental basis. Student paid him RS 100 per day per student individually. No of student is 100. Means 1 student 100 *365 = 36500 & 36500 * 100 = 3650000. His T O will be exceeds Rs 20 lakh limit under GST . Then Mr A needs to registered himself under GST & What is rate for GST ?
Sir please explain
09 July 2024
Sure, let's address each case regarding GST registration and the applicable rates:
### Case 1: Hostel Premises rented to Government for Student Residence
**Scenario:**
- Mr. A has rented out his hostel premises to the government for student residence.
- Government pays Rs. 100 per day per student.
- Number of students: 100
- Calculation: Rs. 100 per day * 365 days * 100 students = Rs. 36,50,000 per annum
**GST Registration:**
- Mr. A's total turnover from this rental exceeds Rs. 20 lakhs annually, which exceeds the GST registration threshold.
- Therefore, Mr. A needs to register under GST.
**GST Rate:**
- Renting of residential premises including hostels is considered a taxable supply under GST.
- GST rate applicable for renting of residential premises (including hostels) is **18%** (9% CGST + 9% SGST/UTGST).
**Conclusion for Case 1:**
- Mr. A needs to register under GST due to his rental income exceeding Rs. 20 lakhs annually.
- GST rate applicable on the rental income received from the government for student residence in the hostel premises is **18%**.
### Case 2: Hostel Premises rented directly to Students
**Scenario:**
- Mr. A rents out his hostel premises directly to students for residence.
- Students pay Rs. 100 per day per student.
- Number of students: 100
- Calculation: Rs. 100 per day * 365 days * 100 students = Rs. 36,50,000 per annum
**GST Registration:**
- Similar to Case 1, Mr. A's total turnover from rental exceeds Rs. 20 lakhs annually.
- Therefore, Mr. A needs to register under GST.
**GST Rate:**
- Renting of residential premises (including hostels) to individuals (students, in this case) is also taxable under GST.
- The applicable GST rate for renting residential premises (including hostels) to individuals is **18%** (9% CGST + 9% SGST/UTGST).
**Conclusion for Case 2:**
- Mr. A needs to register under GST due to his rental income from students exceeding Rs. 20 lakhs annually.
- GST rate applicable on the rental income received directly from students for hostel accommodation is **18%**.
### Summary:
In both cases, since Mr. A's annual rental income exceeds the threshold of Rs. 20 lakhs, he is required to register under GST. The applicable GST rate for renting out hostel premises, whether to the government (Case 1) or directly to students (Case 2), is **18%** (9% CGST + 9% SGST/UTGST). It's important for Mr. A to comply with GST regulations, including registration, filing of returns, and payment of GST on time once registered.
### Case 1: Hostel Premises rented to Government for Student Residence
**Scenario:**
- Mr. A has rented out his hostel premises to the government for student residence.
- Government pays Rs. 100 per day per student.
- Number of students: 100
- Calculation: Rs. 100 per day * 365 days * 100 students = Rs. 36,50,000 per annum
**GST Registration:**
- Mr. A's total turnover from this rental exceeds Rs. 20 lakhs annually, which exceeds the GST registration threshold.
- Therefore, Mr. A needs to register under GST.
**GST Rate:**
- Renting of residential premises including hostels is considered a taxable supply under GST.
- GST rate applicable for renting of residential premises (including hostels) is **18%** (9% CGST + 9% SGST/UTGST).
**Conclusion for Case 1:**
- Mr. A needs to register under GST due to his rental income exceeding Rs. 20 lakhs annually.
- GST rate applicable on the rental income received from the government for student residence in the hostel premises is **18%**.
### Case 2: Hostel Premises rented directly to Students
**Scenario:**
- Mr. A rents out his hostel premises directly to students for residence.
- Students pay Rs. 100 per day per student.
- Number of students: 100
- Calculation: Rs. 100 per day * 365 days * 100 students = Rs. 36,50,000 per annum
**GST Registration:**
- Similar to Case 1, Mr. A's total turnover from rental exceeds Rs. 20 lakhs annually.
- Therefore, Mr. A needs to register under GST.
**GST Rate:**
- Renting of residential premises (including hostels) to individuals (students, in this case) is also taxable under GST.
- The applicable GST rate for renting residential premises (including hostels) to individuals is **18%** (9% CGST + 9% SGST/UTGST).
**Conclusion for Case 2:**
- Mr. A needs to register under GST due to his rental income from students exceeding Rs. 20 lakhs annually.
- GST rate applicable on the rental income received directly from students for hostel accommodation is **18%**.
### Summary:
In both cases, since Mr. A's annual rental income exceeds the threshold of Rs. 20 lakhs, he is required to register under GST. The applicable GST rate for renting out hostel premises, whether to the government (Case 1) or directly to students (Case 2), is **18%** (9% CGST + 9% SGST/UTGST). It's important for Mr. A to comply with GST regulations, including registration, filing of returns, and payment of GST on time once registered.
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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Gift of mutual fund units to daughter
- Not able to file ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Annual return of gst limit
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
