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GST on Hostel and PG Accommodation (Post 53rd GST Council Meeting) ✅New Exemption: From July 15, 2024, accommodations under ₹20,000/month per person with stays of 90+ days are GST-exempt (Entry 12AA). ✅B2C Stays: Long-term B2C stays (90+ days) remained exempt post-July 2022, while short-term stays and those under ₹1,000/day were taxed at 12%. ✅Past Tax Regularization: For periods from July 1, 2017, to July 14, 2024, exemptions apply for stays under ₹20,000/month if they exceed 90 days. ✅Composite Supplies: The exemption doesn't apply if additional amenities (food, internet) push the total cost above ₹20,000. ✅ No GST Registration: PGs and hostels providing only exempt supplies are not required to register under GST. ▶️ Share it with all your friends ▶️ Repost if you like Follow Manjushree Sudheendra for more #hostel #gst #finance

Significant update with regards to levy of GST on hostel accommodation services Significant development from the 53rd GST Council meeting. Hostel accommodation services, previously taxable, are now exempt up to ₹20,000 per month per person. While we await formal notifications and circulars, this clarification is a major step forward for the industry. Over the past months, I have made several representations before higher revenue authorities and this issue was actively discussed before the GST council. The landmark ruling of Karnataka high court in case of Taghar Vasudeva Ambrish and Madras High Court decision in Thai Mookambikaa Ladies Hostel, played crucial roles in GST council recommendation. Both rulings highlighted that hostel accommodation should be treated as residential accommodation, thereby exempting it from GST under entry no. 12 of Notificstion 12/2017z This recent recommendation by the GST Council also extends benefits to past cases, providing an opportunity for taxpayers to reclaim refund of taxes previously paid. However, we await further clarity on the refund process, especially for cases where period for claiming refund has lapsed. This exemption marks a significant relief for the hostel accommodation sector, and I am optimistic about the positive impact it will have on businesses and individuals alike. #GST #HostelAccommodation #TaxExemption #GSTCouncil #TaxRelief #SupremeCourt

👉 53rd GST Council meeting: Co-living firms welcome proposal to exempt GST on accommodation services. 👉 Co-living service providers have welcomed the GST Council's proposal to exempt GST on accommodation services charging up to ₹20,000 per month per person 👉 Providing relief to students and working professionals, the GST Council has recommended exempting accommodation services having a value of supply up to ₹20,000 per person per month from goods and services tax. 👉Co-living space providers have welcomed the new notification saying that it clarifies that hostels and accommodations for working professionals are exempt from GST within certain limits. 👉 Since these services are meant for students or working class and exemption can be availed only if the stay is up to 90 days, the GST Council said. 👉 “To create a separate entry in notification No. 12/2017- CTR 28.06.2017 under heading 9963 to exempt accommodation services having value of supply of accommodation up to Rs. 20,000/- per month per person subject to the condition that the accommodation service is supplied for a minimum continuous period of 90 days. To extend similar benefits for past cases,” the government said in a statement. #gst #gstcouncil #hostels #rent #exemption #finance #taxbenefits

🚀 New Article Alert! 🚀 "Excited to share my latest article, 'GST Exemption on Hostel Accommodation: A Historical and Current Perspective.' Understanding the nuances of GST exemptions can be challenging, especially when it comes to the hospitality sector. In this article, I've delved into the historical background and current implications of GST exemptions on hostel accommodations, offering a comprehensive analysis of how these policies have evolved and their impact on the industry today. 🔍 In this article, you'll discover: 1.The Evolution of GST Exemptions on Hostel Accommodation 2.Key Legislative Changes Over Time 3.Current GST Regulations and Their Implications 4. How These Exemptions Affect the Hospitality Sector 5. Future Trends and Considerations Whether you're a hotelier, tax professional, or simply interested in GST policies, this article will provide valuable insights into the complexities of GST exemptions in the hostel industry. I'd love to hear your thoughts, experiences in the comments. Let’s discuss how these GST exemptions shape the future of the hospitality sector!💬 #GST #Hospitality #Taxation #GSTExemptions #Finance #TaxPolicy #HostelAccommodation

Behind the glitz and glamour of India's extravagant weddings lies a darker side: tax evasion. A recent crackdown by the Income Tax Department has exposed a sophisticated network of wedding planners, hawala agents, and entry operators who facilitate the flow of unaccounted cash. 𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐢𝐭 𝐰𝐨𝐫𝐤? ▪️ These lavish affairs, often characterized by exorbitant spending on venues, catering, and celebrity performances, frequently involve significant cash payments. ▪️ To evade taxes, these cash transactions are routed through a network of intermediaries, including wedding planners and event managers. These intermediaries, in turn, work with hawala operators to transfer funds across borders or within the country, often without leaving a paper trail. ▪️ To further legitimize these illicit financial flows, fake invoices are generated by shell companies. These companies, often dormant or non-operational, issue invoices for services that were never rendered. ▪️ These fraudulent invoices are then used to claim input tax credit, thereby reducing the tax liability of the individuals involved. ▪️ In the case of foreign destination weddings, money is often routed through complex financial channels to avoid detection. The impact of such tax evasion is far-reaching. It not only deprives the government of much-needed revenue but also undermines the integrity of the tax system. Additionally, it creates an uneven playing field for honest taxpayers who comply with tax laws. As tax authorities intensify their scrutiny of the wedding industry, it's imperative for individuals planning lavish weddings to prioritize transparency and compliance. By choosing legitimate vendors, making payments through official channels, and maintaining proper documentation, we can contribute to a fairer and more transparent tax system. #tax #finance #india #wedding #moneylaundering #hawala #ITDepartment #taxcompliance #forex

Further to the announcement in late 2023, a tourist tax of BD 3 per room per day to be levied on hotel accommodation came into effect from 1 May 2024. If you are a provider of hotel accommodation services in Bahrain and required to collect the new tourist tax, have you considered the following: 1. Is the new tourist tax subject to Bahrain VAT? 2. Impact on advance bookings/reservations made before 1 May 2024? 3. Updates required to the accounting system? If you would like to discuss the above, please reach out to the KPMG Bahrain tax team.

From varying taxes to legal distinctions, the lodging industry faces complex compliance hurdles. Clarus helps hotels navigate these challenges smoothly. Read our most recent blogs to learn more and reach out to our team if you need help navigating these complexities. https://lnkd.in/ev2_VGXW

Exciting news for hostel owners! The Madras High Court has ruled that hostels are exempt from GST. This landmark decision brings relief to hostel operators and underscores the importance of clarity in tax regulations. Let's stay informed and celebrate this favorable ruling for the hospitality industry. #GST #MadrasHighCourt #HospitalityIndustry #TaxExemption

🌍 VAT & International Business Travel: What You Need to Know About Hotel Stays 🛏️ Navigating VAT on international business trips can be tricky, especially when it comes to services like hotel accommodation. 🛋️ 📌 Scenario: A Bulgarian company sent an employee on a business trip to Germany. The company received an invoice for the hotel stay, including German VAT. The big question: Should the Bulgarian company issue a self-invoice (protocol) under Article 117 of the Bulgarian VAT Act and include it in their VAT records❓ 🪄 The Answer: Since the service provided (hotel accommodation) is directly linked to real estate (the hotel), the place of supply is where the property is located - in this case, Germany. 🔎 This means the VAT is due in Germany, and the Bulgarian company does not need to self-assess VAT in Bulgaria for this transaction. 💡 Key Takeaway: When dealing with cross-border services related to real estate, like hotel stays, always check where the service is considered to be supplied. ✒️ This ensures you’re compliant with VAT laws and avoid unnecessary tax headaches. #VAT #TaxCompliance #BusinessTravel #HotelAccommodation #InternationalBusiness #TaxExpertise #VATRegulations #CrossBorderTax #FinanceTips #GlobalBusiness

🏨 ECJ Clarifies VAT on Holiday Rentals and Ancillary Services 🏨 In the landmark Case C-552/17, the European Court of Justice (ECJ) addressed whether holiday accommodation services, combined with ancillary offerings like cleaning and laundry, fall under the special VAT scheme for travel agents. The ruling clarified that such bundled services are subject to the special scheme, impacting how VAT is calculated and applied. Key Takeaways: -Special Scheme Application: Holiday rentals with additional services are treated as a single supply under the travel agents' special VAT scheme. -VAT Rate Determination: The applicable VAT rate depends on the nature of the services and the Member State's regulations. This decision is crucial for businesses in the travel and hospitality sectors, as it influences VAT compliance and pricing strategies. For a comprehensive analysis, read the full article: https://lnkd.in/dkMGTeSw How will this ruling affect your business operations? #VATCompliance #ECJRuling #TravelIndustry #TaxLaw #HospitalityBusiness