Breaking News: Doon Dehradun Uttarakhand hostels and PG will also come under GST
Tax department will soon clamp down on about two thousand hostels and PGs in Doon
Latest Updated 03/08/2023: 12% GST will be charged from hostels and paying guests. More than two thousand hostels and PG hostels of Dehradun will come under its ambit. This will directly make the education of the students expensive. Earlier, GST was not levied on hostels charging less than Rs 1,000 per day.
Hostel-PG are running in different areas of Education Hub Dehradun. Many of these are registered, while many are running without registration. Recently, the Bangalore bench of the Advance Construction Authority had said in a judgment that hostels are not the same as residential units, hence they are not exempted from GST. After this decision, there is a stir in the hostels and PG hostels of Dehradun. In fact, if 12 per cent GST starts being levied, then hostels and PGs in the city will come under its purview. The first effect of this will be that the monitoring of hostels and PGs running illegally will start.
They will also have to register with the GST department. According to the GST department, so far hostels and PGs with charges less than Rs 1,000 did not pay GST, which will have to pay GST in future. However, hostels with an annual turnover of less than Rs 20 lakh are exempted from GST. In Dehradun, a large number of paying guests and hostels are running in areas like Karanpur, Prem Nagar, Clement Town, Mussoorie Road, Patel Nagar, Doon University Marg etc.
Direct impact on students
With the implementation of GST on hostels, its effect will be seen on the fees of the students. For example, if the monthly rent of a student in a hostel is Rs 10,000, it will increase to Rs 11,200 after GST is implemented.
In this case monitoring will be done by the department. Tax will be collected from hostels-PGs coming under the purview of GST.
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