Archive · 4 Dec 2025
SC Exempts Student, Professional Hostels from GST
The Supreme Court in India recently made a big decision.
They said that if a residential building is used as a hostel for students or working professionals, it should not have to pay a special tax called GST.
The court explained that the main use of the building is still for living, so adding an 18% tax would make things harder for students and workers.
This decision supports an earlier ruling by the Karnataka High Court.
The case involved a building in Bengaluru with 42 rooms that was being used as a long-term hostel.
Before this, some tax authorities had said that hostels should not be treated as residential buildings, but the courts disagreed and decided that they should be exempt from this tax.
Supreme Court rules leasing residential premises as hostels exempt from GST.
Bench upholds Karnataka High Court's decision on GST exemption.
Court states 18% GST would burden students and professionals.
Ruling based on a plea by a Bengaluru property co-owner.
Karnataka AAR and AAAR had earlier denied GST exemption for hostels.
- Who
- Supreme Court of India
- What
- Ruling on GST exemption for hostels in residential buildings
- When
- Thursday (specific date not mentioned)
- Where
- New Delhi
- Why
- To uphold the legislative intent of exempting residential use from GST
- Court
- Supreme Court of India
- Bench
- Justices J.B. Pardiwala and K.V. Viswanathan
- GST Rate
- 18%
- Property Type
- Residential building
- Tenant
- M/s D Twelve Spaces Pvt. Ltd.
- Location
- Bengaluru
- Number of Rooms
- 42