(A) Supply As per section 7 of CGST act 2017

Section 7 of CGST Act,2017 from bare act : –

(1) For the purposes of this Act, the expression “supply” includes––

(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

(b) import of services for a consideration whether or not in the course or furtherance of business;

(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and

(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.

Hence Paying Guest Services Accounts Supply of Services as Per Section  7 of CGST act 2017.

(B)No Exemption

Paying Guest Services not to be confused with Exemption under Clause 12 , Notification No. 12/2017 (Central) Services by way of renting of residential dwelling for use as  residence.

Residence as per Black Law’s Dictionary is Living or dwelling in a certain place permanently or for a considerable length of time. The place where a man makes his home, or where he dwells permanently or for an extended period of time.

Dwelling meaning

The house In which a man lives with his family; a residence ;the apartment or building, or group of buildings, occupied by a family as a place of residence.

Therefore Paying Guest Services not to be Confused with Above notification.

(C)Place of Supply Section 12 of IGST Act 2017

S.No. Nature of Service Place of Supply
1. Immovable property related to services, including hotel accommodation Location at which the immovable property or boat or vessel is located or intended to be located if located outside India: location of the recipient

(D)SAC Code for Paying Guest Services

996322 Room or unit accommodation services provided by Hostels, Camps, Paying Guest etc 18 28/06/2017 also check SAC Code 99 or 9963

My Fellow Member Correct me If Im Wrong by Commenting Below.

The writer can be reached at [email protected]

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    The PG services is covered under Exemption under Clause 14 , Notification No. 12/2017-CT(Rate) and is exempt provided the rate is upto Rs.1,000 per day.

  2. Dinesh says:

    Sir, will you please clarify if any residential building is given to other person for operating as PG house, does it attract GST . The rent collect per room is 16000 for 2 beds.

  3. Pradip Kumar Shome says:

    I am planning to give one room to short term paying guests on rent through Arbnb. The room rent and ancillary cost per day may be 950 to 1200 rupee per day. Shall this attracts GST in west Bengal?

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January 2021