A hostel is owned by an educational institution earning rental income from students of various streams. Whether GST is applicable on such income?
Services provided by an educational institution to its students, faculty and staff are exempted vide N/N 12/2017-CT(R).
Here the meaning of educational institution is given as below:
“educational institution” means an institution providing services by way of,—
- (i) pre-school education and education up to higher secondary school or equivalent;
- (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
- (iii) education as a part of an approved vocational education course;
If the said institution is covered under the definition of educational institutions, then hostel stay charges is exempted under GST.