Maharashtra GST Advance Ruling on Hostel Services Withdrawn
The Authority for Advance Ruling allowed the applicant to withdraw their request, meaning no decision was made on taxing student hostel services.
- Ruling
- NO.GST-ARA- 25/2022-23/B- 630, Mumbai, dt. 28/11/2025
- Dated
- 28 Nov 2025
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The applicant asked if hostel services qualify as a composite supply.
- The applicant asked if these services are exempt from GST.
- The applicant voluntarily withdrew the request before a ruling was issued.
- The Authority did not provide any guidance on the taxability of hostels.
In short
A business owner asked the Authority for Advance Ruling (AAR) in Maharashtra to clarify if providing lodging and food to students is exempt from Goods and Services Tax (GST). Before the authority could decide, the business owner asked to withdraw the application. Because the request was withdrawn, the authority closed the case without answering any of the questions.
What has changed
How it worked before
Businesses were looking for clarity on whether student hostel services should be treated as a single package (composite supply) and if they qualify for specific tax exemptions.
What has changed
Nothing changed. Because the application was withdrawn, the authority did not issue a decision. This document provides no legal guidance or interpretation of how GST applies to student hostels.
Who this affects
Owners of private hostels, student housing facilities, and paying guest accommodations who are unsure about their GST obligations.
An example
Imagine a hostel owner, 'StudentStay,' wants to know if they should charge GST on their monthly fees. They look at this order and see it mentions hostel services, but they should not assume it supports their tax filing. If StudentStay relies on this document to stop paying GST, they may face penalties if the tax department later decides their services are taxable. They must seek their own professional advice or file their own application if they need a binding answer.
What you should do
Do not use this order to justify your tax position. An advance ruling only applies to the specific business that requested it, and since this case was withdrawn, it contains no legal interpretation at all. Consult with a tax professional to understand how GST applies to your specific business model.
If you do nothing
If you assume this document provides a tax exemption, you risk underpaying your GST. If a tax officer disagrees with your interpretation, you will be liable for the unpaid tax, interest, and potential penalties. Relying on a withdrawn or irrelevant ruling does not protect you from tax audits or legal consequences.
The terms explained
- Composite supply
- A package of two or more goods or services sold together where one is the main service and the others are naturally bundled with it.
- Advance ruling
- A formal decision from the tax authority on how GST applies to a specific business situation.
- Exemption
- A provision that allows a business to not pay tax on certain types of income or services.
The ruling in detail
Authority for Advance Ruling
M/s. AMIT KISHOREKUMAR GOENKA
NO.GST-ARA- 25/2022-23/B- 630, Mumbai, dt. 28/11/2025 · Maharashtra
Questions before the authority
- whether hostel services to the students for providing lodging along with food is a composite supply within the meaning of section 2(30) of the GST Act.
- whether supply of such service is eligible for exemption under Sl. No. 14 of Notification No. 12/2017-CT (Rate) dated 28/06/2017 as amended time to time (hereinafter the Exemption Notification).
- whether supply of such service is eligible for exemption under circular no. 32/06/2018 dated 12/02/2018.
- whether supply of such service will be covered under SAC 9963 as defined under CBIC press release dated 11/06/2018.
Facts
The applicant is the owner of a private hostel providing accommodation services along with food, laundry, and allied services to students preparing for competitive exams or attending secondary schools and colleges. The applicant sought an advance ruling on the classification and taxability of these services under the GST framework. Subsequently, the applicant submitted a request via email to withdraw the application.
Ruling
The Authority allowed the applicant to withdraw the application voluntarily and unconditionally. Consequently, the Authority did not address the merits of the questions raised or provide any ruling on the taxability of the services.
Reasoning
The applicant submitted a request to withdraw the application via email dated 17.11.2025. The Authority exercised its discretion to allow the withdrawal of the application voluntarily and unconditionally. As a result, the Authority did not proceed to examine the merits or detailed facts of the case.
Provisions relied on
- Section 97 of the Central Goods and Services Tax Act, 2017
- Section 98 of the Central Goods and Services Tax Act, 2017
For the practitioner
This order provides no guidance on the taxability of hostel services as the application was withdrawn. It serves only as a procedural record of the **voluntary withdrawal** of the request. Practitioners cannot rely on this document for any substantive interpretation of GST law regarding hostel accommodations.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/amit_kiishorkumar_goenka_withdraw_order_compressed_1.pdf
Legibility of the scan, as read: high.
Prepared 14-10-2026.
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