What Is the GST on Senior Living Communities in India?
The exemption, precisely
The exemption comes from a 2018 amendment to the central GST rate notification — Notification No. 14/2018-Central Tax (Rate), which added an exemption for services provided by an old age home run by the Central Government, a State Government, or an entity registered under Section 12AA of the Income Tax Act, 1961, to residents aged 60 years or above, against consideration up to ₹25,000 per month per member, where that consideration is inclusive of boarding, lodging and maintenance.
Every part of that condition matters: the operator has to be government-run or a registered 12AA/12AB charitable trust — a private commercial operator, even a well-run one, does not qualify by default. The ₹25,000 figure is a ceiling on the combined charge, not a rate; a charitable home charging above that per resident per month loses the exemption for that portion. And the exemption covers boarding, lodging and maintenance bundled together — separately-billed medical or specialist care is a distinct question.
What's taxable, and why the distinction matters
A commercial senior living operator — most privately run "Pay Homes" and virtually all ownership-model senior living communities — is generally providing a taxable supply, typically at 18% GST on service/maintenance charges. If a project bundles accommodation with a subscription-style care package, how that bundle is taxed can depend on whether it's treated as a single composite supply or several distinct supplies billed separately, which is a genuinely technical question that depends on how the specific contract is drafted.
Research gaps
This research did not find a Kerala-specific GST ruling or advance ruling authority (AAR) decision dealing specifically with senior living communities in the state. GST is a central law applied uniformly, so a Kerala-specific rate is not expected to exist — but how a specific operator's contract is taxed (composite supply vs. multiple supplies) is fact-specific enough that this guide cannot tell you the exact tax treatment of any particular project's bill.
Frequently asked
If a senior living home says it's "tax-exempt," does that automatically apply to me?
Only if the operator is a Section 12AA/12AB registered charitable trust (not a private company) and your total monthly charge, inclusive of boarding, lodging and maintenance, is ₹25,000 or less. Ask the operator to confirm their registration type and show how the exemption applies to your specific quoted charge.
Sources & further reading
This guide is provided for general information and research purposes. It is not legal, tax or financial advice. Rules can depend on the specific type of property, operator, agreement and individual circumstances. Where a decision involves a substantial sum, inheritance, tax or contractual dispute, get advice from a lawyer or chartered accountant who can look at your specific documents. GST treatment in particular depends heavily on how a specific contract is structured — get advice from a chartered accountant before assuming an exemption applies to your situation.