Rent received from the Government Hostel is taxable under GST

Last updated: 28 February 2024

Court :
Telangana AAR

Brief :
The Telangana AAR, in the case of In Re. Navya Nuchu [TSAAR Order No. 05/2024 dated February 09, 2024], held that the act of renting the property to the Schedule Caste Development Department, Government Welfare Departmental Hostels and Government Social Welfare College Boys Hostel ("Government SWCBH") are not qualified for exemption under Notification No. 12/2017-Central Tax (Rate), dated June 28, 2017("the Exemption Notification") because there is no direct relation between the services provided by the Applicant and the functions discharged by the Government SWCBH under Article 243W read with Schedule 12 to the Constitution of India. Therefore, these services do not qualify for exemption under the Exemption Notification.

Citation :
TSAAR Order No. 05/2024 dated February 09, 2024