GST on private Hostel

I have given a residential flat to private individual with option to sublet and run a student hostel. 

 

With recent changes in the GST, my tenant is saying GST is now applicable to him.

 

I want to understand if this is true. He is just providing a place to stay to student's and no services expect for electricity bill which is included in the fee he is charging. 

Replies (5)
Quick Summary
A landlord is seeking clarification on whether Goods and Services Tax (GST) applies to a residential flat rented out for use as a student hostel. The tenant believes recent GST changes make it applicable, especially as electricity bills are included in the rent. The consensus is that renting residential property for business activities, like a student hostel, may now be subject to GST under Reverse Charge Mechanism (RCM) if the landlord is unregistered and the tenant is registered. It's advised to consult a tax professional for definitive guidance.

If it can be shown used for social and philanthropic activities then it is not accepted.
Yes he is correct.
As per Notification 5/22 CT rate : Rentimg of Residential Property for Business Activities is being covered under RCM .
Where the Landlord is unregistered & tenant is registered.
So your tenant is required to pay GST.

Thank you everyone for your replies. You help is much appreciated! 

 

Thank you

Your tenant might be correct—recent GST changes in India could apply. Residential property rented to private individuals is GST-exempt, but using it as a student hostel may classify it as a commercial service, taxed at 18%. This includes electricity bundled in fees. To clarify, consult a tax expert. You can also use and app that you can download for ios in case you want to earn this amount separately.

Did you just steal my link and acquired ownership of my text? You must delete the text then too. As the writer I did not give you a permission to do modifications to my text.

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