Hostel and Accommodation service operating through rental premises along with food-related service taxed @9% CGST

Last updated: 16 February 2024

Save Share

Quick Summary

The Tamil Nadu AAR has ruled that hostel and accommodation services provided in rented premises, which also include food services, are not eligible for GST exemption. These services fall under tariff heading 9963 and are taxable at 9% CGST. The ruling clarifies that the exemption is for residential dwellings, and hostel accommodation does not qualify. Businesses exceeding the turnover threshold must register for GST.

Court :
Tamil Nadu AAR

Brief :
The Tamil Nadu AAR in the case of In re. Nithiyashree Ladies Hotel [Advance Ruling No. 77/AAR/2023 dated September 04, 2023] held that, hostel and accommodation service operating through rental premises along with food-related service is not eligible for exemption and such entry would fall within the purview of tariff heading "9963", taxable at the rate of 9 percent CGST as per Sl. No. 7(vi) of the Notification No. 11/2017, Central Tax (Rate) dated June 28, 2017 ("the Rate Notification").

Citation :
Advance Ruling No. 77/AAR/2023 dated September 04, 2023

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

144 Views Comment Share GST Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments