GST on Hostels Rates

Gaurav Vij (10 Points)

21 July 2022  

Earlier, Student hostels, Working professional hostels - Companies providing the hostel accommodation to Students and Working professionals on private room or shared accommodation basis.

SAC Code used was - 996311

GST seems was not applicable. i.e. Rate 0%.

In a recent notification, There is an amendment that starting 18th July 2022, the Hotel accommodations having rates less than INR 1000 per day will be charged 12% gst. There is no mention about Hostel/PGs.

Just wanted to know the expert recommendation from the Honable CA Fraternity, how we are going to consider this for Hostels and PGs. 

a. Should SAC Code 996311 will still apply for hostel and pg (student or working professionals)

b. Effective 18th July 2022, What rates should be charged to the residents/customers taking this service from hostel providers