Hostels and PG accommodation services attract @ 12% GST

In re Srisai Luxurious Stay LLP (GST AAR Karnataka) The AAR, Karnataka, in the case of Srisai Luxurious Stay LLP [Ruling No. KAR ADRG 25/2023 dated JULY 13, 2023] ruled that hostel and PG accommodation cannot be considered equivalent to residential accommodation and thus such services are not eligible for exemption and accordingly are exigible to GST @12%. Facts: M/s. Srisai Luxurious Stay LLP (“the Applicant”) was engaged in the business of developing, running, subletting, and managing paying guest accommodation, service apartments, flats and is also providing additional services like mea...