Case Law Details
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.
As a result, the Karnataka Authority for Advance Ruling (AAR) decided to dispose of the application as withdrawn, marking the end of the ruling process. The withdrawal was accepted, and no further action was taken regarding the original request for an exemption.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
M/s. S Residences (Prop. : Sri. Dyananda Premchandra Sagar), (herein after referred to as ‘Applicant’), # 515/528, Harohalli Hobli, Devarakaggalahalli Village, Harohalli Industrial Area, Ramanagara – 562112, Karnataka, having GSTIN 29AFKPS0616R3ZM, have filed an application for Advance Ruling under Section 97 of, CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act, KGST Act.
2. The applicant submitted they are engaged in providing hostel facility “S Residences”, exclusively for students under the categories of 2-tier apartment, 3-tier apartment and 4-tier apartment wherein a unit of residence is shared by 2, 3 and 4 students respectively; a fixed amount is charged per student per academic year on the basis of the accommodation chosen; students are required to take the hostel facility for full academic year; the amounts paid are non-refundable. The hostel contains various facilities like security, CCTV cameras, monitored entry and exit with face recognition and biometrics, parking, WIFI, recreational space and game rooms, study rooms, gym, discussion rooms, yoga room, hot water facility, laundry facility, warden and other staff etc., and no separate amount is charged for these facilities; a separate mess “S square”, run by M/s Raynham Ventures Pvt. Ltd., is available for food and the students are required to transact separately.
3. In view of the above, the applicant has sought advance ruling in respect of the question Whether the exemption given vide entry No.12 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time, is applicable to the hostel service given by the applicant?
4. The applicant was given an opportunity of personal hearing on 28.10.2024 and Sri Dayananda K, C A and duly Authorised Representative of the applicant attended the hearing and reiterated the facts narrated in the application. However, the applicant vide their dated 30.10.2024, requested this authority to permit them to withdraw their application, in view of the clarification of the tax position on the hostel services, issued vide Notification No.4/2024-Central Tax (Rate) dated 12-07-2024.
In view of the above, we pass the following,
RULING
The application filed by the applicant for advance ruling is disposed off as withdrawn.
