GST payable on hostel services provided by Trusts to students

In re Students’ Welfare Association (GST AAR Maharashtra)

Question -1(a). Whether hostel accommodation provided by Trusts to students is covered within the definition of Charitable Activities and thus, exempt under SI. No. 1 of notification No.12/2017-CT (Rate)?

Question -1(b). Whether the supply of residential or lodging services @ Rs. 22,250/- per annum is covered by Sr. No. 14 of Notification No. 12/2017 – CT (Rate)?

Answer- 1(a) Answered in the negative.

1(b) Answered in the affirmative.

Question -2. Whether different treatment would be required for use of hostel rooms given by us for residential purposes but ultimately been used by the hirer for commercial use. Answer – Answered is in negative

Question -3. Whether the said notification would be applicable if the accommodation if decided to be given for commercial purposes in future whether the activity still would be able to enjoy exemption under said notification.

Answer – Not answered in view of answers to Que. (1) and (2) above.

Question -4. Whether the large donations given by the donors would be treated as ‘service and taxed accordingly and whether only sponsored donations are believed to be covered under said mega exemption notification.

Answer : Not answered for incomplete details submitted by the applicant.