2021-TIOL-216-AAR-GST

Ghodawat Eduserve LLP

GST - Applicant provides commercial training or coaching service for students appearing for 11th and 12th standards who are desirous of appearing for IIT etc.  - Applicant is also providing hostel facility to the students on demand basis and charging them additionally - such services are optional - Hostel provides basic residential facilities required to study and which include well-maintained furnished residence, Light, water, etc. and for which facility the applicant charges a lump-sum fee of Rs.34,000/- per year per student i.e. Rs.951/- per day - Applicant is of the view that such services by way of renting of residential dwelling for use as a residence is exempt vide Sr. no. 12 of notification 12/2017-CTR - A ruling is sought in this regard.

Held: Rooms in the hostel are let out to the students on sharing basis for residential and study purpose only and that too during the training and coaching periods - Applicant's contention that the said activity is covered under Entry no. 12 of 12/2017-CTR as 'services by way of renting of residential dwelling for use as residence' is not acceptable because the criteria for residential dwelling under the common parlance test are not satisfied -  Applicant is providing hostel on rent to various students where the fees charged per student per day per room is much less than Rs.1000 per day per person - Entry no. 14 to notification 12/2017-CTR provides Nil rate of GST when the services supplied by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, has a declared tariff of a unit of accommodation below one thousand rupees per day or equivalent - The word “hostel” not being specifically mentioned implies that the same would be covered under the term 'whatever name called' - Description of the service is user based meaning that, if the accommodation is used for residential or lodging purpose, then it is immaterial who the user is - Therefore, where the Hostel fees charged per student per day is much less than Rs.1000/-, the applicant's activity satisfies the conditions of Entry Sr. no. 14 of notification 12/2017-CTR and hence it would be exempt from taxes - CBIC Circular 32/06/2018-GST dated 12 February 2018 is relied upon: AAR

- Application disposed of: AAR