Is RCM applicable to Staff PG accommodation Paid

1. Hon’ble High Court of Karnataka in the case of Taghar Vasudeva Ambrish, held that renting of building to run a hostel will qualify as renting of residential dwelling. On the basis of this decision, PG accommodation service provided will also qualify as “Renting of Residential dwelling” and therefore PG accommodation service is exempt from GST(as per entry no 12 of notification no 12/2017).However, exemption is not available if the same is provided to registered person. Assuming you are registered under GST, you are liable to pay tax under RCM as per entry 5AA of Notification No. 13/2017,

Also, since the GST paid under RCM on PG Accommodation is eligible, you can pay tax under RCM and avail it.

2. With respect to Mess expenses, no GST paid would be eligible, as ITC is specifically blocked under section 17(5)(b)(i)

   Disclaimer: "These are ex facie views of mine and the same should not be construed as professional advice / suggestion"