GST applicable on sublet accommodation, rules Karnataka AAR

The Authority for Advance Ruling, Karnataka had given a ruling on residential accommodation. It had ruled that residential accommodation given to students ranging for a period from three months to eleven months with the facility of attached bathrooms matched that of a hotel “which can by no imagination be termed as residential dwelling”, or a house. The Authority had said that “The applicant is not providing the service of leasing in individual capacity to the company but as a part of the group of lessors… It is seen from the agreement that lessors are providing the service of leasing or renting of immovable property for a consideration.”

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