GST on PG and hostel rent in 2026: the ₹20,000 and 90-day rule, explained

GST on paying-guest and hostel accommodation confused students and operators for years. Here's the current position in plain English — not legal advice, but enough to ask the right questions.

What changed

In July 2022, an older exemption for budget accommodation lapsed and hostels charging under ₹1,000 a day began attracting 12% GST. After pushback, the 53rd GST Council meeting in June 2024 recommended exempting accommodation services of up to ₹20,000 per person per month, and a new exemption entry took effect from 15 July 2024.

The two conditions

1. Value: the accommodation charge is ₹20,000 or less per person per month.
2. Duration: the stay is continuous for at least 90 days.

When GST may still apply

• Short stays of a few days or weeks.
• Premium rooms priced above ₹20,000 per person.
• Separately billed services that aren't part of accommodation.

What to do if GST shows up on your bill

Ask the operator politely which provision they're applying and whether your stay qualifies. Keep your rent receipts — they're also useful for HRA claims. If you think you've been charged wrongly, raise a ticket with the operator first; tax specifics are best checked with a chartered accountant.