No GST Exemption on Accommodation Services Consisting of Rooms Without Kitchen & With Daily Housekeeping Services | AAR

Case Details: Authority for Advance Rulings, Karnataka Ms. Deeksha Sanjay, In re - [2024] 158 taxmann.com 17 (AAR-KARNATAKA)

Judiciary and Counsel Details

• • Dr M.P. Ravi Prasad & Kiran Reddy T., Member
  • Sanjay M. Dhariwal, CA for the Appellant.

Facts of the Case

The applicant was engaged in business of renting of an immovable property and providing accommodation services consisting of rooms or units i.e. portion of room with beds for single/double/triple occupancy, without kitchen and with daily housekeeping services. It filed an application for advance ruling to determine whether such services are exempt or taxable under GST.

AAR Held

The Authority for Advance Ruling observed that the applicant would be providing services that would be akin to services provided by hotel, INN, guest houses, clubs and other similar establishments since it would be charging per bed on monthly basis and un-related people would share room. It was further noted that the rent being charged per person per unit per day would be less than five thousand. Therefore, it was held that the services would be covered under Heading No. 9963 and would attract 12% GST.