High Court exempts hostel residents from paying GST

The mandate by the GST department in Tamil Nadu to levy 18% GST on hostel and PG accommodation fees had sparked controversy and concern among students and working women in Coimbatore. This decision, affecting over 500 hostels and PGs in the city, was met with opposition from the Coimbatore Hostel Owners Association, who appealed to the Madras High Court.
Advocate Aparna Nandakumar, representing the association, argued that hostel services should be exempt from GST as they are used for residential purposes. Justice Krishnan Ramaswamy ruled in favour of the association, emphasising that hostel rooms serve as residential dwellings for students and working women, regardless of their financial status.
The ruling highlights the importance of considering the perspective of the service recipient when imposing GST. The decision overturns the GST Council's directive, ensuring that hostel residents are exempted from paying GST, particularly crucial for those from economically weaker sections.