In re S Residences (GST AAR Karnataka)
M/s. S Residences, a hostel facility for students located in Harohalli, Karnataka, filed an application for an advance ruling under the Goods and Services Tax (GST) Act, seeking clarification on whether the hostel service they provide qualifies for exemption under entry No. 12 of Notification No. 12/2017-Central Tax (Rate). The applicant operates a hostel offering various amenities such as security, Wi-Fi, recreational spaces, and more, charging a fixed fee per student based on accommodation choice, with no additional fees for the amenities. The students are also required to take the hostel for the full academic year, and the payments made are non-refundable. A separate mess facility is available, operated by a third-party provider, M/s Raynham Ventures Pvt. Ltd.
The applicant sought an advance ruling regarding the applicability of GST exemptions for their hostel services, as stated in Notification No. 12/2017. During the process, a personal hearing was conducted on October 28, 2024, where the authorized representative of the applicant reiterated the facts presented in the application. However, on October 30, 2024, the applicant requested to withdraw their application in light of recent clarifications issued through Notification No. 4/2024-Central Tax (Rate) dated July 12, 2024. The clarification in this notification likely impacted the tax position on hostel services, prompting the applicant to seek the withdrawal of the ruling request.
