Punjab AAP opposes 12% GST on hostel fee in central varsities

Condemning the decision, the AAP accused the National Democratic Alliance (NDA) government at the Centre of obstructing the education of poor students.

The Aam Aadmi Party (AAP) has strongly opposed the central government’s decision to impose a 12% goods and services tax (GST) on hostel fees of central universities.

The Aam Aadmi Party (AAP) has strongly opposed the central government’s decision to impose a 12% goods and services tax (GST) on hostel fees of central universities.

Condemning the decision, the AAP accused the National Democratic Alliance (NDA) government at the Centre of obstructing the education of poor students.

The Bengaluru bench of the Authority of Advance Ruling (AAR) last week ruled that hostels are not akin to residential dwelling units and hence are not exempt from GST.

The AAR said GST exemption was applicable on the accommodation services, of charges up to ₹1,000 per day, provided by hotels, club, campsites etc. till July 17, 2022. “PG/hostel rent paid by inhabitants do not qualify for exemption as the services,” it said.

The AAP said this decision will put a financial burden on poor students. “Education has always been tax free, but the government is finding new ways to collect money from students,” the party said in a statement. The party’s student wing, Chhattra Yuva Sangharsh Samiti’ (CYSS), will protest against this decision.