The rental of housing for the purpose of hosting students commercially is not excluded from GST.

In the case of Aluri Krishna Prasad (GST AAAR Andhra Pradesh)    

In this instance, the lease between the appellant and the lessee is based on built-up area rather than unit cost of housing, therefore it cannot be regarded as being granted for a residential home. The lessee, to whom the building is leased, is the one who provides housing for the students; the appellant does not extend housing to the students. The exemption is not accessible, according to AAR, unless the two requirements of “renting of residential dwelling” and “usage as residence,” which are intertwined and inseparable. It is established law that tax regulations should be interpreted exactly and rigidly, and not in a broad sense, especially when exemptions, concessions, or benefits are to be claimed. If a conditional GST exemption based on end-use exists, the end-use must be established based on the facts and only for the recipient of the services from the supplier directly. It is not the responsibility of the department to determine how the services are ultimately used by the recipient in turn, and so forth. In the present instance, there is no evidence to suggest that the structure was a private habitation or that the lessee intends to utilise it as his personal residence, as was covered in great detail above. When making its decision, the lower authority considered all of the case’s facts and particulars and analysed them in the context of the pertinent provisions of the APGST Act and Rules 2017 as well as pertinent notifications. In the present instance, it is clear from the foregoing reading that the property in question is being used for commercial purposes rather than being a home or residence being used by a family or group of persons sustaining a regular household. A student’s temporary stay will not suffice to meet the criteria for “for use as dwelling,” and as a result, it is ineligible to be included under heading 9963 or 9972. Therefore, the activity in question involves non-residential property that is rented out for commercial purposes, and the provision of such services is classifiable under Service Code (Tariff) 997212 as “Rental or leasing services involving own or leased non-residential property” given the facts and circumstances of the case. It is taxable in the lessor’s hands and subject to IGST at a rate of 18%.