Supreme Court Clarifies: Renting Residential Premises for Hostels is Exempt from GST
This Supreme Court judgment holds that renting a residential dwelling for use as a hostel qualifies for GST exemption under Entry 13, as the ultimate residential use by students satisfies the condition. The Court clarified that the exemption is activity-specific, not person-specific, and the lessee need not personally occupy the premises for the exemption to apply.
Facts Of The Case:
The dispute originated from a residential property in Bangalore, co-owned by the respondent, which consisted of 42 rooms in a four-storied building. On June 21, 2019, the co-owners executed a lease deed in favor of M/s DTwelve Spaces Private Limited, a company that operates as an aggregator. The lessee's business model involved taking such properties on lease to sub-lease them as hostels, providing long-term...