The GST Council's recommendation to exempt GST on accommodation services charging up to Rs 20,000 per month will benefit the co-living industry and thousands of students and corporate employees, say industry experts. Previously, there was 18% GST on the services. According to Abhishek A. Rastogi, founder of Rastogi Chambers, recent years have seen ambiguity regarding GST on residential dwellings. He stated that a new notification clarifies that hostels and accommodations for working professionals are exempt from GST within certain limits. He mentioned that tenants would not qualify for the exemption if the stay is less than 90 days or if the monthly payment per person exceeds Rs 20,000. Bharath Bhaskar, co-founder of Settl, a coliving operator, expressed industry players' view that while the recommendation provides clarity in the short term, there should be a long-term classification of these accommodations as residential dwellings, thereby exempting them from GST without any limits. He suggested that such a change would lessen the financial burden on end customers, helping them save on rental expenses. Rami Kaushal, managing director, consulting & valuation services, India, Middle East & Africa, CBRE, mentioned that experts believe tax exemption for co-living and student housing sectors could significantly enhance affordability and attract a broader tenant base, including young working professionals and students pursuing higher studies away from home. He anticipated sustained growth in these sectors, fostering a more dynamic and accessible housing market in India's urban centres. Sunny Garg, co-founder of CRIB, a PropTech startup, noted that the exemption is expected to benefit numerous hostels and co-living companies, particularly those in the student housing segment, where monthly charges generally fall below the specified threshold nationwide. He highlighted that the condition requiring accommodation services to be supplied for a minimum continuous period of 90 days is easily met in the case of student co-living arrangements and hostels, which typically involve longer lease or stay durations.