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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Draconian, direct assault on democracy: Left parties on bills to remove PM, CMs over criminal charge
New Delhi (PTI): Left parties on Wednesday said the new bills that provide for the removal of the prime minister or chief ministers arrested on serious criminal charges, are a direct "assault" on democracy and the federal framework, and vowed to oppose it "tooth and nail".
The government plans to introduce three bills in Parliament on Wednesday for the removal of the prime minister, a Union minister, a chief minister or a minister of a state or Union Territory when arrested or detained on serious criminal charges for 30 days in a row
Flaying the move, CPI(M) general secretary MA Baby said on X that "Modi Govt's 3 bills to oust PM, CMs, Ministers after 30 days in custody expose its neo-fascist characteristics. This direct assault on our democracy will be opposed by CPIM tooth and nail. We urge all democratic forces to unite against this draconian move".
"These bills, cloaked as tackling crime in high office, reveal their true intent given the RSS-controlled Modi govt's history of undermining elected state govts. With SIR, they mark a blatant move to subvert our democracy. All democratic forces must resist," he said on X.
CPI(M) Rajya Sabha MP John Brittas called the bills "draconian".
"The new bill by Union Home Minister Shri Amit Shah, purportedly in the name of 'public interest, welfare, and good governance,' is, in reality, draconian and designed to destabilize opposition-led state governments while undermining India’s federal structure," Brittas said in a post on X.
"In an era marked by vindictive politics, where central agencies are deployed against opposition leaders, the provisions will be misused for ulterior motives," he said. The CPI(M) leader said the bill’s reference to “constitutional morality” contradicts its spirit, as it deviates from the established principle that disqualification and punishment should be tied to convictions by courts, not merely charges or arrests. "This principle is clearly enshrined in Section 8 of the Representation of the People Act (RPA). In today’s pernicious political climate, where individuals can be easily charged, arrested, and detained for extended periods, this legislation will be weaponised to target political opponents and erode democratic norms," he said.
CPI(ML) Liberation general secretary Dipankar Bhattacharya said the bills will sound the "death knell" for federalism.
"Viewed together with the ongoing systematic subversion of the electoral system starting with the appointment of Election Commissioners to the relentless push for 'One Nation, One Election' system, this amendment will sound the death knell for federalism and parliamentary democracy in India," Bhattacharya said.
"Every state government opposed to the BJP's politics and policies will henceforth be rendered permanently destabilised and dysfunctional. Every NDA ally will be on tenterhooks to fall in line with the BJP," he said in a statement.
"The weaponisation of central agencies like ED, CBI, IT, NIA and the abuse of the Constitutional office of Governors in narrow partisan interest, a trend which has been seriously condemned on several occasions even by the Supreme Court, will now gain legal validity with the enactment of this bill," he added.
The three bills were approved by the Cabinet on Tuesday.
These bills are the Government of Union Territories (Amendment) Bill 2025; the Constitution (One Hundred And Thirtieth Amendment) Bill 2025; and the Jammu and Kashmir Reorganisation (Amendment) Bill 2025. The Bills are likely to be referred to a committee of Parliament.
