SC rules that renting residential premises for student hostel use is exempt from GST

NEW DELHI: The Supreme Court on Thursday ruled that leasing a residential property to an organisation that uses it as a hostel for students and working professionals is exempt from GST.

A bench comprising Justices JB Pardiwala and KV Viswanathan upheld the Karnataka High Court’s judgment, which had earlier held that renting a residential premises to an entity running a hostel for students and professionals qualifies for GST exemption.

The bench noted that the end-use of the property remains residential, and imposing 18% GST on the lease agreement between the property owners and M/s DTwelve Spaces Private Limited would ultimately burden students and working professionals. This, the court said, would defeat the legislative intent behind granting exemption for residential use.

The case involved a co-owner of a residential property with 42 rooms in Bengaluru. The owners had leased the property to M/s D Twelve Spaces Private Limited, which then operated it as a long-term hostel, with stays ranging from 3 to 12 months.

Seeking clarity on whether the leasing service qualified for GST exemption, the petitioner approached the Karnataka Authority for Advance Ruling (AAR). The AAR held that renting a residential dwelling for use as a residence did not fall under the exemption entry.

On appeal, the Appellate Authority for Advance Ruling (AAAR) maintained that a hostel is not a residential dwelling and denied the exemption.

However, the Karnataka High Court disagreed and ruled that leasing a residential property for use as a hostel for students and professionals is indeed exempt from GST—a view now affirmed by the Supreme Court.

GSTN Releases Advisory on Suspension of GSTR-3B Filing Access Effective December 2025

Purpose of Table 3.2 in GSTR-3B

Table 3.2 of Form GSTR-3B is meant to capture details of inter-state outward supplies made to the following categories:

• Unregistered buyers (B2C)

• Composition scheme taxpayers

• UIN holders

These figures are automatically drawn from the taxable supplies declared in Table 3.1 / 3.1.1 of GSTR-3B, and are system-generated on the basis of data reported in GSTR-1, GSTR-1A and IFF.

🔔 Important Update (Effective From the November 2025 Tax Period)

1️⃣ Table 3.2 Will No Longer Be Editable

Starting from the November 2025 return period, the values auto-populated in Table 3.2 of GSTR-3B will be locked and cannot be altered by taxpayers.
GSTR-3B must be filed strictly using the system-generated numbers.

This change aims to ensure seamless reconciliation between outward supply reporting (GSTR-1/IFF) and tax payment (GSTR-3B).

🔄 What To Do If Auto-Populated Values Are Wrong?

Corrections cannot be made in GSTR-3B.

2️⃣ Revisions Must Be Made Through GSTR-1A

If the figures in Table 3.2 are incorrect due to wrong reporting in GSTR-1/IFF, taxpayers should:

• File GSTR-1A for the same tax period to amend the entries.

• Once GSTR-1A is submitted, the changes will automatically reflect in Table 3.2.

• GSTR-3B can then be filed using the updated values.

Additional amendments can still be made later through GSTR-1/IFF of subsequent months, as per the normal amendment rules.

✔ Compliance Advisory

To minimize mismatches and avoid repeated corrections:

3️⃣ Ensure Correct Reporting in GSTR-1 / GSTR-1A / IFF

Taxpayers should:

• Review draft GSTR-1 or GSTR-1A carefully.

• Verify proper classification of inter-state supplies.

• Pay special attention to B2C inter-state reporting.

• File returns only after confirming the accuracy of all entries.

Since GSTR-3B will rely solely on system-populated values, accurate reporting in GSTR-1/GSTR-1A is crucial.

📌 Frequently Asked Questions (FAQs)

Q1. What is the new rule for Table 3.2?

From November 2025 onward, Table 3.2 of GSTR-3B becomes completely non-editable.
Taxpayers must use the auto-populated data derived from GSTR-1/GSTR-1A/IFF without any manual changes.

Q2. How can incorrect auto-populated values be corrected?

If the values are incorrect due to wrong entries in GSTR-1/IFF:

• File GSTR-1A for that tax period to modify details.

• After submission, the revised values will instantly update Table 3.2.

• Then you can proceed with filing GSTR-3B.

Further amendments can always be made in GSTR-1/IFF of upcoming periods.

Q3. How can I ensure error-free reporting in Table 3.2?

• Double-check all outward supply data before filing GSTR-1 or GSTR-1A.

• Immediately fix any inaccurate entries through GSTR-1A.

• Ensure correct classification of inter-state B2C supplies.

• Maintain consistency between outward supply returns and tax payment returns.

Accurate reporting prevents mismatches and avoids unnecessary compliance issues.

Q4. Until when can I file GSTR-1A for correcting Table 3.2 values?

GSTR-1A can be filed anytime after GSTR-1 is filed and up until GSTR-3B is submitted for that period.

This means you can correct Table 3.2 through GSTR-1A right up to the filing of GSTR-3B.

GSTN Releases Fresh FAQs on GSTR-9/9C for FY 2024-25 – What You Must Know

FAQs on GSTR-9/9C for FY 2024–25

Issued on: 4 December 2025

GSTN has released an additional set of Frequently Asked Questions (FAQs) based on feedback and queries received from various stakeholders. These FAQs (dated 04-12-2025) aim to help taxpayers better understand the reporting requirements for different tables of GSTR-9 and GSTR-9C, especially concerning value disclosures and reconciliations.
Access the complete FAQ document by clicking here.

— Team GSTN

Enroll in Our Practical Course on GSTR-9/9C (FY 2024-25)

Includes:

• GSTR-9/9C for FY 2024-25 & 2023-24

• Reconciliation: 2B vs 2A and 2B vs Books

GST FAQs – Summary of Key Queries & GSTN Replies

GST officers reprimanded by Allahabad HC for scrapping registrations without explaining the basis

Allahabad High Court Criticises GST Officials for Cancelling Registrations Without Citing Reasons

The Allahabad High Court has strongly criticised the GST department for routinely cancelling traders’ GST registrations without offering any justification. The court observed that such arbitrary action amounts to declaring the “economic death” of a business, as these casually issued cancellation orders impose severe and disproportionate hardship on taxpayers and disturb genuine commercial operations.

The bench emphasised that denying a dealer their statutory right to operate under GST without proper reasoning or a real chance to correct alleged mistakes runs contrary to the very principles on which the GST law is based.

Hearing a petition filed by Anil Art and Craft, the division bench of Justices Saumitra Dayal Singh and Indrajeet Shukla annulled an October 15 order of the Assistant Commissioner (State Tax), Bhadohi, which had cancelled the petitioner’s GST registration retrospectively from October 8.

The court directed that its judgment and a copy of the writ petition be forwarded to the commercial tax commissioner. Within 15 days, the commissioner has been asked to issue clear administrative instructions to all GST officers handling registration cancellations. These instructions must prescribe penalties for officers issuing non-speaking orders or denying reasonable opportunity to taxpayers, ensuring such lapses do not recur.

The petitioner had earlier received a show-cause notice alleging wrongful availment and transfer of fake input tax credit in violation of Section 16 of the GST Act. However, the court took serious note of how the officer handled the matter under the GST framework.

The judges pointed out that merely stating a reply is “not satisfactory” reflects only the final conclusion and not the reasoning behind it, falling short of the basic requirement of a reasoned administrative order. They added that the officer acted “carelessly” and in complete disregard of essential procedural safeguards.

Highlighting the gravity of cancelling a trader’s GST registration, the bench said that such an action effectively cripples the business — preventing it from issuing invoices and availing or passing on input tax credit. While the registration stands cancelled, all past tax liabilities and compliance obligations continue, making the impact even more severe.

The judgment dated November 20 noted that these casually passed cancellation orders impose undue hardship on traders and severely hamper legitimate business activity.

GSTN set to suspend GSTIN over this compliance violation

GSTN, on 20 November 2025, issued a new advisory emphasizing that taxpayers must furnish their bank account details in accordance with Rule 10A of the CGST Rules, 2017. This obligation covers all registered persons, excluding TCS/TDS applicants and individuals who were granted GST registration through suo-moto action by the department.

What Does Rule 10A of the CGST Rules Mean?

Rule 10A requires that every GST-registered taxpayer—except a few specified categories—must provide their bank account details within 30 days of obtaining GST registration or before filing their first outward supply return (GSTR-1 or IFF), whichever occurs earlier.

Latest Update Issued on 20 November 2025

GSTN has announced that strict enforcement of Rule 10A will soon be activated on the GST portal.

Important points from the advisory:

✔ Mandatory Submission Timeline

Bank account details must be furnished:

• Within 30 days of receiving GST registration,
  OR

• Before filing GSTR-1 or IFF,

whichever condition is met first.

✔ Who Needs to Follow This Requirement?

All GST-registered persons except the following:

• TDS deductors (under Section 51)

• TCS collectors (under Section 52)

• Taxpayers who received GSTIN through suo-moto registration (Section 62)

✔ What Happens If You Don’t Update Your Bank Details?

Failure to comply may result in suspension of the GST registration on the portal.

Possible consequences include:

• Inability to file GST returns

• Blocking of e-way bill generation

• Restriction on making outward supplies

• Risk of cancellation proceedings

Taxpayers are strongly encouraged to update their bank details promptly to prevent any operational or compliance-related disruptions.

Why Has GSTN Issued This Advisory at This Stage?

GSTN has released this clarification due to a growing number of instances where:

• GST registrations are obtained without any real business operations

• GSTINs are created without linking a valid bank account

• Fake invoices are generated even before verification is completed

• Refunds are claimed without proper banking trails or genuine transactions

By tightening compliance under Rule 10A, GSTN aims to:

✔ Detect fake invoicing networks at an early stage
✔ Prevent fraudulent or non-genuine registrations
✔ Reduce refund frauds and misuse of input tax credit (ITC)
✔ Strengthen taxpayer verification and system reliability

This measure aligns with the Government’s ongoing efforts to enhance the transparency and credibility of the GST framework.

Penalties and Consequences for Not Complying with Rule 10A

If a taxpayer does not update their bank account details within the prescribed timeline, the following actions may occur:

1️⃣ GST Registration May Be Suspended

Your GSTIN will shift to a “Suspended” status, immediately affecting business operations.

2️⃣ GSTR-1 Filing Will Be Blocked

You won’t be able to report outward supplies, which affects your customers and hampers regular business activity.

3️⃣ E-Way Bill Services Will Be Disabled

Movement of goods gets restricted because the portal blocks e-way bill generation.

4️⃣ Department May Issue Notices

The GST department may initiate cancellation proceedings under Rule 21.

5️⃣ Customers’ ITC May Get Affected

If your registration is suspended, the ITC of your buyers may be blocked, leading to disputes and compliance issues.

How to Update Bank Account Details on the GST Portal (Step-by-Step)

Bank details must be updated through a Non-Core Amendment on the GST Portal.

Step 1: Log In

Visit gst.gov.in and sign in using your credentials.

Step 2: Open the Registration Section

Go to:
Services → Registration → Amendment of Registration (Non-Core Fields)

Step 3: Choose the ‘Bank Accounts’ Tab

Enter the following information:

• Account holder’s name

• Account number

• IFSC code

• Bank name

• Supporting proof (cancelled cheque/passbook/bank statement)

Step 4: Upload Proof

Make sure the uploaded document clearly shows:

• Account number

• Name of the account holder

• IFSC code

• Bank name

Step 5: Verify & Submit

Submit the amendment using DSC or EVC.
An ARN will be generated after submission.
If the details match PAN records and GST data, approval is usually automatic.

Which Documents Are Accepted as Valid Proof?

The GST Portal permits the following documents as proof of bank account details:

• A cancelled cheque

• The first page of the bank statement

• The first page of the passbook

The document must clearly display the account holder’s name, account number, IFSC code, and bank name.

Common FAQs for Taxpayers and Professionals

1️⃣ Can a savings account be used?

Yes. Proprietors may use a savings account, although opening a current account is preferable for business transactions.

2️⃣ Is a joint bank account allowed?

No. The bank account must be solely in the name of the person or entity holding the GST registration.

3️⃣ What if the bank account has not been opened yet?

Open the account and update the information at the earliest. Delays may result in registration suspension.

4️⃣ Can a taxpayer begin business without updating bank details?

No. GSTR-1 filing is blocked until bank account details are added.

5️⃣ What if incorrect bank details were submitted?

You must revise the information through a Non-Core Amendment. Incorrect details can also trigger suspension.

The GSTN advisory issued on 20 November 2025 clearly indicates that providing bank account information under Rule 10A is no longer optional—it is a mandatory compliance requirement directly tied to maintaining an active GST registration.

Taxpayers and practitioners should ensure the details are updated promptly to avoid disruptions.

Taxation of GTA Services under GST and Application of RCM

Definition of a GTA

A Goods Transport Agency is defined as a person providing road transport services for goods and issuing a consignment note.
If a transporter does not issue a consignment note, they are not considered a GTA, and their services are not liable to GST.
Thus, independent truck or tempo owners who do not provide consignment notes are typically not classified as GTA.

GST Taxability Framework for GTA Services (Revised up to 22.09.2025)

Tax Structure

*Prior to 22.09.2025, the applicable rate was 12% with ITC.

Key Points

A GTA must choose the Forward Charge option (18%) every year by submitting Annexure V on the GST portal.
If the GTA wishes to discontinue the option, Annexure VI must be filed; otherwise, the GTA will continue under the default RCM structure (5%).
Once selected, the option remains valid for the entire financial year.

GTA must also include a declaration on invoices when opting for Forward Charge.

Mandatory Invoice Declaration (for Forward Charge)

When a GTA chooses to pay GST under Forward Charge, they must include the declaration as specified in Annexure III of Notification 13/2017, inserted through Notification 5/2022–Central Tax (Rate) dated 13-07-2022 (effective from 18-07-2022).

Declaration:
“I/We have obtained registration under the CGST Act, 2017 and have opted to pay GST on GTA services for transportation of goods under Forward Charge from the Financial Year ______. We have not switched back to the Reverse Charge Mechanism.”

Liability to Pay GST under RCM

GST under the Reverse Charge Mechanism (RCM) becomes payable when the freight charges are borne by any of the following types of recipients:

• A factory

• A society

• A cooperative society

• A body corporate

• A GST-registered person

• A partnership firm or an Association of Persons (AOP)

• A casual taxable person

If the freight is paid by an unregistered customer, the GTA will need to charge 18% GST under Forward Charge (only if the GTA has opted for FCM).
If the GTA has not opted for Forward Charge, the service continues to be exempt for unregistered recipients as per GTA provisions.

Situations Where RCM Does Not Apply

The Reverse Charge Mechanism (RCM) is not applicable to GTA services when goods are transported by road in a goods carriage to the following entities:

(a) Any department or establishment of the Central Government, State Government, or Union Territory;
(b) Any local authority;
(c) Any governmental agency,

provided that such entities are registered under the CGST Act solely for the purpose of TDS compliance under Section 51, and not for carrying out taxable supplies of goods or services.

Important Note

These services are exempt from GST under Entry 21B of Notification 12/2017, meaning no GST liability arises in such cases.

GTA Service Exemptions

The following categories of transportation services provided by a Goods Transport Agency remain exempt from GST:

• Transport of agricultural produce

• Milk, food grains, and salt

• Organic manure

• Newspapers

• Relief or disaster-related materials

• Defence-related goods transported for the Government

• GTA services provided to an unregistered individual, including an unregistered casual taxable person

Place of Supply Rules for GTA Services

• If the recipient is registered: The place of supply is the location of the recipient.

• If the recipient is unregistered: The place of supply is the location where the goods are handed over to the GTA for transportation.