Lakeme Ladies Hostel GST Advance Ruling TN/92/AAR/2023 Withdrawn
The Authority for Advance Ruling dismissed this case because the applicant withdrew their request, providing no guidance on hostel taxability.
- Ruling
- Advance Ruling No.92/AAR/2023 Dated: 04.09.2023
- 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
- Lakeme Ladies Hostel asked about GST exemptions for residential services.
- The applicant requested to withdraw their application before a decision.
- The Authority closed the case without ruling on the merits.
In short
The company asked the Authority for Advance Ruling (AAR) in Tamil Nadu whether their hostel services were exempt from Goods and Services Tax (GST). Before the authority could decide, the company withdrew its request. Because the case was withdrawn, the authority did not answer any of the questions about taxability or registration.
What has changed
How it worked before
Businesses often look to advance rulings to understand if hostel accommodation qualifies for tax exemptions under specific government notifications.
What has changed
Nothing changed. Because the application was withdrawn, there is no legal decision or guidance provided by this order.
Who this affects
Owners of hostels or residential accommodation businesses seeking clarity on their GST status.
An example
Imagine a hostel owner in Chennai reads about this case and wonders if their own food services are exempt. Because this ruling was withdrawn, it provides no answer for them. They should not assume their services are exempt based on this document. They must seek their own professional advice or file their own application if they need a formal answer.
What you should do
Do not rely on this order for your tax planning, as it contains no ruling. An advance ruling only binds the specific business that asked and its own tax officer; it is not a general law for all businesses. If you have questions about your tax liability, consult a professional to review your specific business model.
If you do nothing
If you assume this order provides an exemption for your business, you risk underpaying your taxes. A tax officer may disagree with your interpretation, leading to penalties and interest charges. Always verify your tax position based on current laws rather than withdrawn or irrelevant rulings.
The terms explained
- Advance Ruling
- A formal decision given by tax authorities to a business about how tax laws apply to their specific activities.
- Exemption Notification
- An official government order that lists specific goods or services that do not have to pay tax.
- Composite Supply
- A bundle of two or more goods or services provided together, where one is the main service and the others are incidental.
The ruling in detail
Authority for Advance Ruling
M/s. LAKME LADIES HOSTEL
Advance Ruling No.92/AAR/2023 Dated: 04.09.2023 · Tamil Nadu
Questions before the authority
- Whether the hostel and residential accommodation extended by the Applicant hostel would be eligible for exemption under Entry 12 of Exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and under the identical Notification under the TNGST Act, 2017 and also under Entry 13 of Exemption Notification No.9/2017- Integrated Tax-Rate dated 28.06.2017 as amended?
- Whether the Applicant hostel being eligible for exemption under Sl. No. 12 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 dated 28.06.2017 as amended would at all be required to register under the GST enactments by virtue of the exemption notification as afore mentioned and also under the provisions of Section 23 of the CGST/TNGST Act, 2017?
- Whether any specific tariff entry is applicable to hostels under the Tariff Notification, in the event of requirement of registration?
- Whether, in the event of the hostel accommodation being an exempt activity, the incidental activity of supply of in-house food to the inmates of the hostel would also be exempt being in the nature of a composite exempt supply?
- Whether the judgement of the Division Bench of the Hon'ble Karnataka High Court in the case of Taghar Vasudeva Ambrish - vs- Appellate Authority for Advance Ruling, Karnataka reported in Manu/KA/0327/2022 is applicable to the facts of the applicant?
Facts
The applicant operates a ladies' residential hostel for students and working women. They provide lodging and optional in-house food services for a monthly fee. The applicant sought an advance ruling on the taxability and registration requirements for these services.
Ruling
The Authority did not address the merits of the questions raised. The application was **dismissed as withdrawn** at the request of the applicant. Consequently, no ruling was provided on the taxability or registration status of the hostel.
Reasoning
The applicant submitted a letter dated Nil, received by the registry on 01.09.2023, expressing their intent to withdraw the application for an Advance Ruling. The Authority acknowledged this request and decided to treat the application as withdrawn without examining the merits or detailed facts of the case. Therefore, the proceedings were closed without issuing a substantive ruling on the questions presented.
Provisions relied on
- Section 98(4) of the CGST Act, 2017
- Section 98(4) of the TNGST Act, 2017
For the practitioner
This order provides **no guidance** on the taxability of hostel services or the applicability of specific exemption notifications. It serves only as a procedural record of the withdrawal of the application. Practitioners should note that this case does not establish a precedent for the tax treatment of similar hostel businesses.
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/92_lakeme_ladies_hostel.pdf
Legibility of the scan, as read: high.
Prepared 13-10-2026.
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