Inmates of Thozhi hostels left in distress, as inclusion of GST pushes rent up

The Hindu

a day ago

The Social Welfare department's move to include Goods and Services Tax (GST) in monthly rent, thereby increasing the rent by over ₹1,000, has caused hardship and confusion to inmates of Thozhi hostels.
In Adyar, the Thozhi hostel where a twin-sharing non air-conditioned (AC) room cost ₹5,800, now costs ₹6,844.
In Tambaram hostel — one of the most expensive Thozhi hostels — a twin sharing non AC room now costs ₹9,200 with GST. New inmates would have to pay the revised rate for the first 90 days.
In early 2024, the Union government had levied a 18% GST on hostels and paying guest accommodations with exemptions provided to those tenants who paid rent less than ₹20,000 and resided in the accommodation for over 90 days.
These government-run hostels provide amenities, such as creche services, lifts, entry with biometrics, Wifi services, geysers among others. Presently in 13 locations across the State, the government has planned for 13 more.
The sudden increase has left many hostellers in a fix. 'This increase does not justify the amenities that are being provided. The hostel is empowering women entering the workforce, however the hike only takes much of our salary. There is little left to support our family,' said Gowri*, an inmate from Thanjavur who stays at the Adyar hostel.
Explaining the move, a senior official from the Social Welfare department stated that last year the GST component was taken from the rent paid by the inmates. 'They had been residing at a discounted price as the quoted price on the website was inclusive of the GST. This year, we have decided to collect the rent at the original rate and levy the GST separately,' the official added.
The move has met with backlash from the hostellers. 'I come from a poor financial background and I am trying to prepare for my postgraduation. The rent of ₹4,605 does not justify the amenities provided. There is no canteen, sporadic WiFi which affects my studies and leaky roofs in bathrooms,' said Radha* from Adyar hostel.
Pointing out that food expenses are in addition to the rent, Tulsi from Thozhi hostel in Guduvancherry said, 'Even if the government hostel is to be competitive with other private entities, there is at least an option of food in private facilities for the ₹8,000 that they take. This rental increase in a government accommodation for empowering women does not seem justified by the various amenities.'
The inmates have petitioned the Tamil Nadu Working Women's Hostel Corporation and the Chief Minister's Cell but to no avail.
Noting the hardship, the official added that the government has planned to write to the GST council to exempt the hostels run by the government from GST in order to provide relief to the inmates.
(*names changed on request for anonymity)