GST on renting of hotel rooms

Tax on renting of rooms by a hotel or lodge or guest house etc. is charged under 3 categories.

1. Rooms with tariff or room charges between Rs. 1000 to Rs. less than 2500 are taxed at 12% and full Input Tax Credit (ITC) is available.
2. Rooms with tariff or room charge between Rs. 2500 and less than Rs. 7500 are taxed at 18% with full ITC.
3. Hotel room with room tariff or charge more than 7500 per day is taxed at 28% with full ITC.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day - 12% with full ITC.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/ and above but less than Rs 7500/- per room per day - 18% with full ITC

Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per night per room - 28% with full ITC.

But I have a serious concern - I have a special case of a hostel chain In Bangalore. They have more than 11 hostels in Bangalore with more than 2000 students. Before GST, they use to charge 13.5k Lum-sum per month per student (+50k security) but after GST, they have declared 9000 as accommodation per student and 4.5k on Mess charges per month per student. Currently, they have started charging 12% GST(approx. INR 550 extra) on food but no GST on accommodation charges, They are not paying any GST on accommodation. Is it fair that a person with more than 2cr accommodation revenue has been exempted from Tax? (Few facts - 2 students are staying in one room, the hostel company is a sole proprietorship, accommodation cost to the owner for one complete room with 2 students is 8k(so accommodation profitability per room is 10k after deducting this cost). Can somebody help me whether this person will be exempted from accommodation tax)?

Regards,