Supreme Court: No GST on Residential Hostels for Students, Working Professionals, Regardless of Lessee

• The Supreme Court of India ruled that leasing residential properties as hostels for students and working professionals is exempt from GST if genuinely used for residential purposes.
• The exemption depends on the end-use of the property, not on who leases it or whether the lessee is a business entity.
• GST is activity-based, not person-based; leasing to companies or institutions does not make it taxable if used as a residence.
• Amendments restricting exemptions for registered lessees apply only prospectively, not retrospectively.
• The judgment provides clarity and relief to property owners, hostel operators, and tenants, ensuring no GST on genuine residential hostels and preventing inflated rental costs.

Source: community.verified.realestate

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.

---

---