GST on Hostels Rates

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Gaurav Vij

11 Points Posted on 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.

https://www.cnbctv18.com/economy/gst-council-meet-hotel-rooms-below-rs-1000-per-day-to-attract-12-percent-tax-13971862.htm

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

Regards

Gaurav

Replies (3)

Quick Summary

A recent notification has introduced a 12% GST on hotel accommodations priced below INR 1000 per day, effective from 18th July 2022. This raises questions for providers of student and working professional hostels and PGs regarding the applicable SAC code and GST rates. Experts are sought for guidance on whether the previous SAC code 996311 still applies and what rates should be charged to residents.

accounts hotelmarvic

4 Points Posted on 31 January 2023

We are having Restaurent with room accomadation what is the rate of GST if rent collected 2500/- per day and what is the HSN code

CA Vidyasagar B

Assistant Manager

176 Points Posted on 01 February 2023

We are having Restaurent with room accomadation what is the rate of GST if rent collected 2500/- per day and what is the HSN code?
Assuming that you are issuing two separate bills for room rent and food you can follow the below

Service	HSN	Rate of tax
Hotel room given on rent	996311	12% (6% CGST and 6% SGST)
Food supplied in the restaurant	996331	5%(2.5% CGST and 2.5% SGST). ** NO ITC can be availed on inputs