Classification of service— The applicant i.e Mody education foundation (MEF) is running a CBSE affiliated School from class 3rd to 12th at NH-11, Laxmangarh, Distt. Sikar (Rajasthan). The applicant is also the sponsoring body of M/s Mody University of Science & Technology (MUST) which is providing educational services to its Students. The applicant is also registered as a Public Charitable Trust u/s 12AA of the Income Tax Act, 1961.

The question before the authority is that whether activity of providing the hostel facility by applicant on the rent to students of MUST is exempt (where hostel accommodation charges will be less than Rs.1000/- per Hostel Seat per day) under Sr. No. 14 of the Notification No.12/2017-Central Tax (Rate) (as amended time to time) dated 28.06.2017 or otherwise.

In the instant case, the service of hostel is optional and not coming out from the package and separate consideration will be charged for providing such hostel facility to the students. In fact, the hostel fees are not a part of any package concerning commercial training & coaching services rendered by the applicant. The Applicant is exclusively providing the Hostel Accommodation Service in isolation and no other service is clubbed or bundled along with the Hostel Accommodation Service. Thus, there is no question of Composite Supply u/s 2 (30) of the GST Act or Mixed Supply u/s 2(74) of the GST Act in the Case of the Applicant.

Held that— As the applicant who is also registered as ‘Charitable Trust' as per Form No. 10AC of the Income Tax Act, 1961 will charge less than Rs. 1000/- per 'Hostel seat' per day from students therefore, the said service is exempted from GST with a condition that this value should be in lieu accommodation facility only and should not be for mixed supply including food & beverage etc. Therefore, considering the provisions of Entry No. 14 of the Notification No. 12/2017-CT (R) Dated 28.06.2017 and clarification given by CBIC in Circular No. 32/06/2018-GST dated 12th February 2018, it is concluded that, the applicant's activity is satisfying the conditions of Entry No. 14 of said Notification No. 12/2017-CT (R) Dated 28.06.2017 and hence would be exempted from GST.