AAR Rejects GST Ruling on Tenant’s Hostel Activity

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  • Last Updated on 7 March, 2026

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GST advance ruling

Case Details: Imperial Graphics (P.) Ltd., In re - [2026] 183 taxmann.com 705 (AAR-TAMILNADU)

Judiciary and Counsel Details

  • C. Thiyagarajan & B. Suseel Kumar, Member

Facts of the Case

The applicant, registered under the CGST Act and the Tamil Nadu GST Act, had leased certain residential properties situated at Coimbatore to an educational trust for use as hostel accommodation. The applicant collected GST on the rent charged to the tenant for such leasing of residential premises. An application for advance ruling was thereafter filed seeking clarification on whether hostel or residential accommodation supplied by the tenant to students would qualify for exemption under the GST law. The applicant also sought a ruling on whether the incidental activity of supply of in-house food to inmates of the hostel by the tenant would be exempt as a composite supply of exempt services. The application thus sought determination on the taxability and exemption status of services provided by the tenant operating the hostel. The matter was accordingly placed before the Authority for Advance Ruling (AAR).

AAR Held

The AAR held that under the advance ruling mechanism provided in the CGST Act and the Tamil Nadu GST Act, a ruling can be sought only in respect of supplies undertaken or proposed to be undertaken by the applicant. The Authority observed that the queries raised in the application related to the services of hostel accommodation and supply of food being provided by the tenant and not by the applicant. It was therefore held that the issues raised did not pertain to supplies made or proposed to be made by the applicant and consequently fell outside the scope of advance ruling under the statutory scheme. The Authority accordingly concluded that the application was not liable for admission and rejected the advance ruling application as not maintainable.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied