(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 basrasushant@gmail.com
Author Bio
I run PG in Bangalore, charge 3200 per head in a 3 sharing room. Do I have to pay GST for this? Any annual turnover limit ?
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.
I m leaving in Pg at Gurgaon and paying 7000 per month, Gst is applicable or not please reply
Thanks
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.
Sir,
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?
Does the person who is rendering the paying guest service need to file the GSTR ?
may claim exemption under Notification 12 (CTR) (i) renting of rooms where charges are one thousand rupees or more per day;
VERY NICE ARTICLE
THANKINGS A LOT YOUR EXCELLENCY
Is there any exemption for Students Hostel/Mess services
WHETHER TAX ABILITY DEPENDS ON BASIC LIMIT OR IT STARTS FROM RS
1.00 ON RECEIVING PAYING GUEST CHARGES.
And what about service where room is rented and shared by two inmates
Hostel service if comes under category of education it is exempted !!
What about hostel services?