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Government Confirms GST Exemption for Student Hostel Services

The Indian government has clarified that Goods and Services Tax (GST) will not be levied on boarding and lodging services provided by educational institutions' hostels. This announcement refutes earlier reports suggesting an 18% GST on such services. The exemption applies to hostels run by institutions from pre-school to higher secondary levels, ensuring educational accommodation remains tax-free.

📖 1 min read read🏷️ GST News

Government Confirms GST Exemption for Student Hostel Services

The Indian government has refuted recent claims suggesting that an 18% Goods and Services Tax (GST) would apply to hostel accommodations provided by educational institutions. Official authorities have clarified that boarding and lodging services offered by hostels affiliated with educational bodies, catering to students from pre-school through higher secondary levels, are explicitly exempt from GST. This stance was also reported by India Today.

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Frequently Asked Questions

What is the purpose of GST in India?
The Goods and Services Tax (GST) in India is a consumption tax levied on the supply of goods and services. It aims to streamline the previous complex indirect tax structure into a single, unified tax system, promoting a common national market.
How many GST slabs are currently applicable in India?
As of recent updates, India primarily utilizes four main GST rate slabs: 5%, 12%, 18%, and 28%. Additionally, certain goods and services may be exempt from GST, while others like precious stones and specified goods have special rates.
What is an HSN code under GST?
HSN stands for Harmonized System of Nomenclature. Under GST, HSN codes are a globally recognized system for classifying goods. They are used to determine the applicable GST rates for various products, ensuring uniformity in classification.
Is GST generally applicable to educational services in India?
Most core educational services provided by recognized educational institutions, including those related to pre-school, higher secondary education, and vocational courses, are typically exempt from GST. However, specific ancillary services or commercial coaching may be taxable.
What is the threshold limit for GST registration in India?
The threshold limit for mandatory GST registration varies based on the nature of supply and the state. For most businesses, it is Rs 40 lakhs for goods and Rs 20 lakhs for services. Special category states have lower thresholds, generally Rs 20 lakhs for goods and Rs 10 lakhs for services.

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