The Karnataka High Court recently held that the residential dwelling houses which are used
for hostel are exempted from the ambit of GST. The court shows that the applicant building used as a dormitory is classified under the housing category in the 2015 revised master plan in Bangalore City The Karnataka High Court said that the rental of housing as a dormitory for students and professionals who work is freed from payment of goods and services (GST) taxes. 

The Karnataka High Court recently held that the residential dwelling houses which are used for hostel are exempted from the ambit of GST. 

Division benches consisting of judges Alok Aradhe and Justice M.I. Arun passed the order while allowing the petition proposed by Taghar Vasudev Ambarish, a Jayanagar resident in Bengaluru. The applicant, together with a joint owner, has leased housing property, has 42 rooms, for tenants, M/S Dtwelve Spaces Private Limited to be used as a dormitory to provide long -term accommodation to students and professionals who work to stay among them among the three periods up to 12 months. The applicant has moved the court that questioned the authorities of the authorities for the previous decision established based on the GST law because they had rejected his request to seek clarification that he was entitled to the release of GST payments in terms of notification issued on September 28, 2017 with the title 'Services by renting residential residence to be used as a residence. ' 

Residential dwelling houses used for hostel are exempted from the ambit of GST.

The appeal authority for the decision in advance, Karnataka in August 2020 said that "the property rented by the applicant is a hostel building, which is more similar to 'friendly accommodation' than that is generally understood as housing accommodation." 'Hostel students are housing accommodation' However, the court shows that the indirect tax center council and customs in their education guidelines issued in 2012 have clarified that "In the trading place of residence, residence means housing accommodation and different from hotels, motels, lodging, guesthouses, etc. which is intended to live temporarily. " Because the word 'residence housing' is not defined in the GST law, the court, from the dictionary shows that the phrase 'residence' and 'residence' have more or less connotation in general language and therefore, there is no different meaning It can occur assigned to the phrase 'residence residential' and cannot be held that the same thing does not include a dormitory, which is used for housing purposes by students or women who work. 

Noting that the 2017 notification does not require the tenant himself to use a place as a place to live, the court also shows that the applicant building used as a dormitory is classified in the category of housing in the 2015 revised master plan from Bangalore City. The applicant is entitled to the release of GST as the first, residential residence, rented for use as a dormitory, including in the field of housing residence because the same thing is used by students and women who work for residential needs, and second, second, residence Housing is used for residence purposes.

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