Hostel accommodation to attract 12 pc GST: AAR
New Delhi (PTI): Students will have to shell out more for hostel accommodation as a 12 per cent GST would be applicable on the rent paid, the Authority of Advance Ruling said in two separate cases.
The Bengaluru bench of the Authority of Advance Ruling (AAR) said hostels are not akin to residential dwelling units and hence are not exempt from Goods and Services Tax (GST).
In an advance Ruling sought by Srisai Luxurious Stay LLP, the AAR said GST exemption was applicable on the accommodation services, of charges up to Rs 1,000/- per day, provided by hotels, clubs, campsites etc. till July 17, 2022.
"PG/Hostel Rent paid by inhabitants do not qualify for GST exemption as the services provided by applicant are not akin to renting of residential dwelling for use as residence," the Bengaluru bench said.
GST on reverse charge will be applicable on the rental to be paid to the landowners by the applicant as the services of the applicant are leviable to GST and thus the applicant has to obtain GST registration, it added.
" Residential dwelling is a residential accommodation meant for permanent stay and does not include guest house, lodge or like places.
"In the instant case, the applicant in his own admission claims to be providing PG/hostel services which inter alia refer to 'paying guest accommodation / hostel' services and are akin to guest house and lodging services and therefore can't be termed as residential dwelling'," the Bengaluru bench said.
In a similar reference by Noida-based V S Institute & Hostel Pvt Ltd, the Lucknow bench of the AAR said that GST would apply on hostel accommodation costing less than Rs 1,000 per day.
"Hence, from July 18, 2022, onward services provided by an applicant will be (covered under GST for taxation) ," the Lucknow bench AAR said.
AMRG & Associates Senior Partner Rajat Mohan said 12 per cent tax on student accommodation in hostels and dormitories would lead to a higher cost for Indian families.
"The GST council may consider taking a policy decision to neutralise the tax cost built into the entire education ecosystem, including student's accommodation," Mohan said.
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Trump returns from China; terms meeting with Xi as 'G-2'
Washington (PTI): US President Donald Trump returned from a visit to China, describing his discussions with President Xi Jinping as a meeting of leaders of "two great countries".
Trump landed at the Joint Base Andrews in Maryland on the outskirts of the US capital on Friday evening, claiming to have struck important trade deals, including one for China's purchase of 200 aircraft from Boeing, with a promise for another 750, as well as agreements benefiting the American agriculture sector.
The US President reached here after a brief refuelling stop at Anchorage in Alaska.
“It’s the two great countries. I call it the G-2. This is the G-2. I think it’ll go down as a very important moment in history,” Trump told Fox News in an interview after meeting Xi on Thursday.
The Washington Post reported that Trump’s remarks put China on an equal footing with the US, exactly what Xi had aimed to achieve with the visit.
“Over two days of meetings here, the carefully choreographed pageantry and the reciprocal gestures of friendship and respect between the world’s two most powerful men displayed a geopolitical dynamic that the Chinese have long craved and Americans had resisted," the Post said.
Trump told Fox News that the relationship with Xi was important and suggested that China may not resort to any aggressive moves over Taiwan, at least till he is in office.
“It’s not a takeover. They just don’t want to see this place — we’ll call it a place because nobody knows how to define it — but they don’t want to see it go independent,” Trump said.
“I don’t think they’ll do anything when I’m here. When I’m not here. I think they might, to be honest with you,” Trump said.
"I want them to cool down. I want China to cool down," he said.
"We're not looking to have wars, and if you kept it the way it is, I think China's going to be OK with that," he added.
The US President said he had invited Xi for a visit to Washington in September.
“Xi has done something Chinese leaders have been working toward for decades — bringing an American president to Beijing as an undisputed peer,” said Julian Gewirtz, who served as China director on the National Security Council under President Joe Biden.
“Xi used the opulent optics of the visit to make clear to the world that China and the United States are the two dominant, equally matched superpowers. There is no going back.”
Trump’s friendly statements toward Xi and the Chinese people were being amplified in China’s state-controlled media, sending the message that “we’re getting along better with the Americans,” John Delury, a senior Fellow at the Asia Society, was quoted as saying by The New York Times.
It was understandable that Trump wanted to be polite to Xi, but that the American president’s gushing approach “weakens Trump and the US”, R. Nicholas Burns, the ambassador to China during the Biden administration, was quoted as saying in The New York Times.
“Xi did not hesitate to warn Trump over Taiwan. Trump should not hesitate to be frank about our concerns, too,” he said.
Trump and Xi are expected to meet at least three times this year.
The US President has invited Xi to the White House in September.
Trump may travel to Shenzhen in China for the Asia-Pacific Economic Cooperation meeting in November. And Xi could come to the G-20 summit in December in Miami.
“This is a summit again that was heavier on symbolism than it was on substance — focus on managing problems, not on solving the problems that exist between the US and China,” said Rush Doshi, former National Security Council deputy senior director for China and Taiwan in the Biden administration.
“The way that both leaders talked about the future indicates that this is going to be part of a process that will play out this year,” said Kurt Campbell, former deputy secretary of State in the Biden administration.
