TMC berates BJP for imposing 12% GST on hostels/PG rent: Says it will burden students

MP | 31 July 2023 : Trinamool Congress has criticised the BJP-led Centre for imposing 12% GST on rent for hostels and PGs, alleging that it amounts to “shamelessly” heaping more burden on the already burdened shoulders of the students. 

The criticism by the party comes in light of reports that recently the Bengaluru bench of the Authority of Advance Ruling (AAR) said hostels are not akin to residential dwelling units and hence are not exempt from Goods and Services Tax (GST). 

Thus, students will have to shell out more for hostel accommodation as a 12 per cent GST would be applicable on the rent paid, the AAR is learnt to have said in two separate cases. 

Referring to one such news article, the TMC said that the BJP’s disregard for students is appalling and that a 12% GST will severely affect struggling students and their families. It also pointed out that previously accommodations up to Rs 1,000/day were exempt, but now, reverse charge GST applies. 

The party took to its social media account and wrote: “The Bharatiya Janata Party (BJP)’s disregard for our students is appalling; they’re shamelessly heaping more burdens on their already burdened shoulders! 

Imposing a crushing 12% GST on rent for hostels and PGs will severely impact struggling students and their families. 

Previously, accommodations up to Rs.1,000/day were exempt, but now, reverse charge GST applies. PM Narendra Modi, the so-called FUTURE you promised our students now appears to be nothing but a disappointing letdown.” 

The Bengaluru Bench of AAR is learnt to have clarified that GST on reverse charge will be applicable on the rental to be paid to the landowners by the applicant as the services of the applicant are leviable to GST and thus the applicant has to obtain GST registration. 

https://www.millenniumpost.in/bengal/tmc-berates-bjp-for-imposing-12-gst-on-hostelspg-rent-527657