Navigating GST Complexities: Tax Treatment for Hotels & Hostels Offering Accommodation and Restaurant Services” - Part-3
Taxation of Hostels and Sarai’s (Dharmshala’s) under GST Laws
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INTRODUCTION:
Hostels and Sarais (commonly known as Dharamshalas) occupy a distinct and socially significant place within India’s hospitality sector. Unlike luxury hotels or high-end resorts, these establishments primarily cater to a diverse spectrum of individuals — students pursuing education away from home, working professionals seeking budget-friendly accommodation, pilgrims visiting religious destinations, domestic and international tourists preferring economical lodging, and even low-income travelers in need of basic shelter.
While Hostels are generally commercial in nature and are often designed to provide affordable living arrangements to students or transient populations, Dharamshalas or Sarais are traditionally operated by charitable or religious trusts. Their core objective is not profit-making but to extend social and religious service, by offering shelter eit.......


