Hostel accommodation to attract 12 pc GST: AAR
New Delhi, Jul 29: 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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Donald Trump sends Diwali greetings, condemns attacks on Hindus in Bangladesh
Washington, Oct 31: Sending Diwali greetings, former president Donald Trump, who is the Republican presidential candidate, on Thursday condemned the attack on Hindus in Bangladesh, vowed to strengthen ties with India and described Prime Minister Narendra Modi as his good friend.
Bangladesh, he said, remains in a total state of chaos and alleged that his Democratic rival Vice President Kamala Harris and her boss President Joe Biden have ignored Hindus across the world and in America.
“I strongly condemn the barbaric violence against Hindus, Christians, and other minorities who are getting attacked and looted by mobs in Bangladesh, which remains in a total state of chaos,” Trump said in a post on Truth Social.
This is for the first time that Trump has spoken on the issue of Bangladesh. Hundreds of Hindus were killed in July-August in Bangladesh when a students’ agitation turned into massive protests leading to then prime minister Sheikh Hasina to flee the country on August 5.
“It would have never happened on my watch. Kamala and Joe have ignored Hindus across the world and in America. They have been a disaster from Israel to Ukraine to our own Southern Border, but we will Make America Strong Again and bring back Peace through Strength,” he said.
“We will also protect Hindu Americans against the anti-religion agenda of the radical left. We will fight for your freedom. Under my administration, we will also strengthen our great partnership with India and my good friend, Prime Minister Modi,” Trump said.
“Kamala Harris will destroy your small businesses with more regulations and higher taxes. By contrast, I cut taxes, cut regulations, unleashed American energy, and built the greatest economy in history. We will do it again, bigger and better than ever before and we will Make America Great Again,” he said.
“Also, Happy Diwali to All. I hope the Festival of Lights leads to the Victory of Good over Evil,” said the former president, who is in a close fight with Harris for the November 5 presidential elections.
