JNU implements GST in its guest houses

With the Goods and Services Tax (GST) has been implemented across the country, the Jawaharlal Nehru University (JNU) has also decided to impose the new tax for renting out its guest houses.

Though, there were no extra taxes on guest house rental, the tariffs of guest house would change to some extent after the imposition of GST. According to a JNU's Aravali Guest House office-bearer, the GST would be imposed on suites and not on double bedroom rooms. After the GST roll out the charges of suites would dip by Rs 30 as visitors would now be charged Rs 1120 instead of Rs 1150 for a day stay, the office-bearer said.

The varsity has three guest houses - Aravali Guest House, Aravali International Guest House and Gomti Guest House - with the tariffs ranging from Rs 200 (for officials) to Rs 5,000.

"Since July 1, JNU migrated to GST and has its own GSTIN and there are no issues with its implementation," JNU Joint Registrar (Finance), Shankar Dhar said, adding that mostly rents for their guest houses were around Rs 1,000, so the GST would not exceed 12 per cent slab.

According to a circular, there will be no GST for renting of guest houses, campus sites or other commercial places meant for residential or lodging purposes with less than Rs 1,000 per room per day tariff.

The tariffs between Rs 1,000 and Rs 2,500 per day would attract a GST of 12 per cent, while those between Rs 2,500 and Rs 5,000 would attract 18 per cent GST, the circular said, adding that the highest GST slab of 28 per cent would be levied if the rents are above Rs 5,000.

The GST of 18 per cent will be levied for usage of equipment in Advanced Instrumentation Research Facility, rent from shops and establishments, and use of convention centre, cafeteria and community centre, the circular said.