GST 2.0 Impact on Long term hostel stays

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The recent GST 2.0 has a change in 9963 where its mentioned for Hotel Accommodation. "reduced the GST rate for rooms priced at ₹7,500 or less per night from 12% to 5%, but without the benefit of Input Tax Credit (ITC)".

We are in Hostel and run student hostels. It also comes under the umbrella of 9963 where long stays less than 3 months of stay or monthly rent greater than INR 20000 is GST taxable at 12%.

Is this GST 2.0 this change, how does it impact long term hostel stay. 

Looking for your expert suggestions

Replies (1)

Impact on long-term hostel stay:

If your hostel charges Rs.7,500 or less per night and is considered under "Hotel Accommodation" (9963), GST drops to 5% without ITC.

But if monthly rent > INR 20,000 or stay < 3 months, GST remains 12%


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