AAR – Authority for Advance Rulings in Karnataka has announced on Friday that there will be 12% GST on rent payment for hostel and PG rent to clear the confusion about whether the rent paid for hostel or pg stays will be exempted from the tax or not.
Hostel and PG Rent to Attract 12% GST
Read Also: Shocking Crime in Uttar Pradesh: Woman Ties Husband, Chops Him into 5 Parts with an Axe.
These accommodations have been categorized as nonresidential in two separate rulings by the Uttar Pradesh and Karnataka AARs. Thus, these will be liable for a 12% GST just like the Inns and small hotels.
Remember that if the house is rented for residence purposes to those who are not required to register for the GST, there will not be any tax for them.
To get more out of our exclusive news, Follow us on Facebook and Instagram.
