The Maharashtra Authority of Advance Ruling (AAR) ruled that Goods and Service Tax (GST) is exempted on Hostel Rent of less than Rs. 1000 per day per Student. The applicant, M/s. Ghodawat Eduserve LLP is providing commercial training and coaching service for students appearing for 11th and 12 th standards who are desirous of appearing for I IT, etc., specifically in the science stream. It is also providing hostel facilities to the student’s on-demand basis and charging them additionally. The service of the hostel is optional and does not come in the form of a package. The hostel provides basic residential facilities, required to stay and study which include well-maintained furnished residence, Light, water, etc., and in consideration, the hostel charges a nominal lump-sum fee of Rs. 34,000/- per year per student i.e. Rs. 95/- (Approx.) per day. The hostel is also available for the students learning in the schools nearby.
Source Taxscan
