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

Last updated: 16 February 2024

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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