The Supreme Court ruled that leasing residential properties for student and professional hostels is exempt from GST, confirming the Karnataka High Court’s earlier decision. This judgment clarifies that the GST exemption applies to renting for residential use, not tenant type.
The Supreme Court, today (20th Sept) led by Chief Justice D.Y. Chandrachud, dismissed SpiceJet’s appeal against a Delhi High Court ruling requiring the airline to ground three aircraft engines due to unpaid dues. The High Court upheld that SpiceJet’s default violated a payment arrangement, emphasizing the urgency to protect the lessors’ interests.
The Delhi High Court has criticized SpiceJet for repeatedly failing to pay its aircraft engine lessors. The court demands that the airline’s directors personally guarantee the payment, reflecting the seriousness of SpiceJet’s financial troubles. This demand highlights the need for a lasting solution to the airline’s cash flow issues and delayed payments.