Supreme Court: GST Exemption Applies to Hostels Rented as Residential Dwellings for Students

• The Supreme Court ruled that renting a residential dwelling for use as a hostel providing long-term accommodation to students/working professionals qualifies for GST exemption under Entry 13 of Notification No. 9/2017-Integrated Tax (Rate).
• The case involved a property leased to a company that sub-leased it as a hostel, which authorities initially denied GST exemption, arguing it was not used as a residence by the lessee.
• The Court held that there is no requirement for the lessee to personally use the property as a residence for the exemption to apply.
• The Supreme Court upheld the Karnataka High Court’s decision, quashing the denial of exemption and confirming that such hostels qualify as residential dwellings for GST exemption purposes.

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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