The Maharashtra Authority of Advance Ruling (AAR) ruled that the GST is exempted on hostel accommodation services provided for 10 months.
The AAR further ruled that the hostel accommodation services provided by the Applicant for duration of stay of one or two months to old students during vacation period would also be eligible for GST exemption.
However, the in case of new students, hostel accommodation services provided for duration of stay of one or two months during vacation period would not be eligible for GST exemption.
The Sr No 12 of the Notification No 12/2017-Central Tax (Rate) dated 28th June 2017 are referred as “the said entry” and the Notification as “the Exemption Notification”. Based on the duration of stay the supply of services can be divided into three broad categories:
- Duration of stay of 10 months.
- Duration of stay of one to two months during the vacation periods to new Students.
- Duration of stay of one to two months during the vacation periods for old students who have already stayed in hostel for duration of 10 months
Issue Raised
- Whether the hostel accommodation services provided by the Applicant for duration of stay of 10 months would be eligible for exemption under Serial Number 12 of Notification 12/2017-Central Tax (Rate) dated 28th June 2017?
- Whether the hostel accommodation services provided by the Applicant for duration of stay of one or two months to new students during vacation period would be eligible for exemption under Serial Number 12 of Notification 12/2017- Central Tax (Rate) dated 28th June 2017?
- Whether the hostel accommodation services provided by the Applicant for duration of stay of one or two months to old students during vacation period would be eligible for exemption under Serial Number 12 of Notification 12/2017- Central Tax (Rate) dated 28th June 2017?
Facts
The Applicant, Maharashtra Jain Education Society, (hereinafter referred as ‘the Applicant’ for brevity) is registered with the Charity Commissioner, Pune Division, Pune, under the registration No F-1993 dated 21st November 1978.
The Applicant is also registered as a Charitable Trust under Section 12AA of the Income Tax Act, 1961 vide the order of registration in Form No 10AC dated 23rd September 2021.
The Applicant is inter-alia engaged in providing accommodation services in the hostels run by the Society. Such services are provided only to the students studying in 11th standard up to the students pursuing graduation, for the academic year from 1st July to 30th April and in the School/College vacation period, from 1st May to 30 June. These services are provided as per the needs of the student either for examination or for undergoing educational courses.
The accommodation is provided in the hostels, which are equipped with bunk beds, steel cupboards, study tables, chairs, clothes drying stands, and fixtures and fitting.
The hostel also consists of a dormitory section, a community hall, modern mess equipment’s, and utensils, computers for the students, parking spaces, play area, auditorium, study area with internet connection, solar water heaters and electrical backup to improve the efficiency of solar water heaters during monsoon season.
Case Information
Applicant Name: M/S Maharashtra Jain Education Society
Judicial Level & Location : Maharashtra AAR
Case Number : 91 of 2022-23
Date of Decision : 31/07/2024
Judges: Shri. Ajaykumar V. Bonde Joint Commissioner Of State Tax, (Member) And Ms. Priya Jadhav, Joint Commissioner Of Central Tax, (Member)
