Building Rent Received from Department Of Social Welfare for running Boys Hostel Exempted from GST: AAR

The article discusses a recent ruling by the Authority for Advance Ruling (AAR) regarding GST exemptions for rent received by a boys' hostel managed by a social welfare department. The AAR decided that the rent received by the department for running the hostel is exempt from GST, as the provision of accommodation to boys in need of care and protection falls under the category of "services by a charitable entity." This exemption is based on the premise that such services are essential and provided by an entity operated by the government or charitable institutions, which aligns with the broader objectives of social welfare and public service.