13 Jul CBIC Exempts Accommodation Services Up to Rs. 20,000/Month for 90 Days – GST Update 2024
Background:
In the 53rd Meeting of the GST Council held on June 22, 2024, it was recommended to create a separate entry in Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, under heading 9963 to exempt accommodation services valued up to Rs. 20,000 per month per person, provided the accommodation service is supplied for a minimum continuous period of 90 days.
Notification:
The CBIC, through Notification No. 04/2024 – Central Tax (Rate) dated July 12, 2024, in exercise of its powers conferred by Section 148 of the CGST Act, amends Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, to exempt accommodation services valued up to Rs. 20,000 per month per person, provided the service is supplied for a minimum continuous period of 90 days, effective from July 15, 2024.
Amendments:
Sl. No. 12:
- Chapter, Section, Heading, Group or Service Code (Tariff): Heading 9963 or Heading 9972
- Description of Services: Services by way of renting of residential dwelling for use as residence, except where the residential dwelling is rented to a registered person.
- Conditions:
- This entry covers services by way of renting of residential dwelling to a registered person where:
- The registered person is a proprietor of a proprietorship concern and rents the residential dwelling in his personal capacity for use as his own residence.
- The renting is on his own account and not that of the proprietorship concern.
- The new property must be situated in India; exemptions cannot be claimed for properties purchased abroad.
- Exclusions:
- Accommodation services for students in student residences.
- Accommodation services provided by hostels, camps, paying guest accommodations, and similar establishments.
- Sl. No. 12A:
- Chapter, Section, Heading, Group or Service Code (Tariff): Heading 9963
- Description of Services: Supply of accommodation services valued at Rs. 20,000 or less per person per month, provided the service is supplied for a minimum continuous period of 90 days.
- Conditions: Nil
Effect of the Notification:
The CBIC has exempted the supply of accommodation services valued at Rs. 20,000 or less per person per month, provided these services are supplied for a continuous period of at least 90 days. This exemption applies specifically to accommodation services rendered by hostels, camps, paying guest facilities, and similar establishments for students residing in student residences.
Similar notifications have been issued under the Integrated Goods and Services Tax Act, 2017 (IGST Act) and the Union Territory Goods and Services Tax Act, 2017 (UTGST Act).
Access the Notifications: The CGST (Rate), IGST (Rate), and UTGST (Rate) Notifications can be accessed at:
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