No GST on women’s hostels, not commercial activity: Madras HC

GST on women’s hostels

GST on women’s hostels: Holding that hostels renting out rooms for girl students and working women fall under the category of exclusively residential purpose, the Madras High Court has ruled that such hostels are eligible for exemption from GST under a 2017 notification of the central government.

Justice Krishnan Ramasamy passed the orders on Friday on a batch of petitions filed by the administrators of women’s hostels. They had earlier approached the Tamil Nadu State Appellate Authority for Advance Ruling seeking a ruling on whether hostel services can be exempted from paying GST. However, the authority had ruled that such services are not eligible for exemption and are taxable at 18%. This order was challenged at the high court.

Read Also: GST Rate rationlisation likely to be top priority for GST Council in FY25

“It is clear that renting out the hostel rooms to girl students and working women by the petitioners is exclusively for residential purpose. This court is of the considered view that the condition prescribed in the notification in order to claim exemption as residential dwelling for use as residence has been fulfilled by the petitioners,” the high court judge said in the order.

He noted services of hostels are covered under Entry12 and 14 of the Notification -Central Tax (Rate), dated June 28, 2017, and so, the petitioners are entitled to be exempted from GST.

The judge said while imposing GST on hostels, it has to be looked into whether the inmates are using the rooms as ‘residential dwelling’ or ‘commercial’ purpose’ because renting residential units would attract GST only when it is used for ‘commercial purpose’.

Justice Ramasamy stressed the issue of levying GST on residential accommodation should be viewed from the perspective of the recipient of the service and not from the perspective of the service provider.

Read Also: GST compensation cess may end before March 2026 deadline

Orders reserved on Balaji’s discharge plea

Chennai: Principal Sessions and Special Court for PMLA Cases judge S Alli on Friday reserved the orders on the petition filed by former minister V Senthil Balaji seeking to discharge him from the money-laundering case registered by the ED under the Prevention of Money Laundering Act, to March 28. The ex-minister moved the discharge petition on the ground that the ED was not able to prove the charges of money laundering with material evidence. Meanwhile his judicial custody was extended till March 28.

‘Casting vote not must for availing paid leave’

Chennai: The first bench of Madras High Court comprising Chief Justice SV Gangapurwala and Justice D Bharatha Chakravarthy on Friday dismissed a public interest litigation (PIL) plea urging to make it compulsory for government and private employees to caste vote in order to avail the paid leave for working on the polling day. The petition was filed by advocate B Ramkumar Adityan. He claimed many in industrial towns leave for their native places on the polling day without exercising their franchise.


Tags: blog

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed