The Supreme Court, in Civil Appeal No. 7846 of 2023, upheld GST exemption on renting of residential properties used as hostels and PG accommodations for students and working professionals. The Court ruled that long-term hostel accommodation qualifies as a “residential dwelling” under Entry 13 of Notification No. 9/2017, even when leased to a company acting as an aggregator. It rejected the Revenue’s view that exemption depends on the lessee’s identity and held that the July 2022 amendment withdrawing exemption for registered persons is prospective and not applicable to earlier periods.