Accounting & Tax Consultancy Firm

Hostel Rent less than Rs.1000/- Per day exempted Under GST MAAR in M/S Ghodawat Eduserve LLP


Maharashtra Authority of Advance Ruling

[Order No. GST-ARA-72/2019-20/B-51 dated August 27, 2021]


M/s. Ghodawat Eduserve LLP (The Applicant) seeking an advance ruling on following questions;

  1. Wether activity of providing the hostel on rent to various students by the applicant is exempt ( where hostel fees charged per students per day is much less than Rs.1000/-)?
  2. If is it exempt it shall be claimed as exempted under sr. no. 12 or sr. no. 14 of notification no. 12/2017-central tax (rate) (as mentioned time to time) dated 28/06/2017 ?

Brief Description of case;

Applicant provides commercial training and coaching service to students, it provides hostel facilities to the students on demand basis and charge them additionally for hostel facilities.

The hotel provides basic residential facilities which are require to stay and to study. Hostel is charging a lump sum fees of Rs.34000/- P.A which comes to Rs.95/- (approx) per day.

Extract of Sr. no. 12 and Sr. no. 14 of notification no. 12/2017 can be read as under;

Sr. no.

Chapter, Heading

Description of Service

Rate %



Heading 9963 or

Heading 9972

Services by way of renting of residential dwelling for use as residence




Heading 9963

Services by a hotel inns, guest house club or composite by whatever name called for the residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent.  








The applicant contended that Residential Dwelling not defined anywhere in the act or notification hence meaning of “residential dwelling” has to be understood in normal trade parlance.

Concerned tax officer contended that Residential dwelling not defined anywhere in law, However in normal case Residential dwelling means a house given on rent to a person or a family consisting of kitchen, Bathroom, Toilet, Rooms and other amenities required for a day to day living purpose under agreement.

The Hon’ble Maharashtra Authority of Advance Ruling  hold that;

The contention of Jurisdictional officer , stating that the subject activity is taxable is not acceptable. The applicant is providing hostel on the rent to various students where fees charged per student per day per room is much less than Rs.1000/- per day per person.

Therefore considering the provisions of notifications Entry no. 14, and clarification given by the CBIC in circular No. 32/06/2018-GST dated 12th February 2018, it is held that, the applicant’s activity is satisfying the condition of Entry sr. no. 14 of the said notification and hence would be exempt from taxes.


Full order copy can be accessed from; Click Here


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