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.
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.
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