Home Case Index All Cases GST GST + AAR GST - 2019 (2) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1605 - AAR - GSTClassification of supply - Composite supply or mixed supply - service to the students for lodging along with food under MOU with the school / college - exemption under Sl. No. 14 of Notification No. 12/2017–CT (Rate) dated 28/06/2017 - rate of tax - Held that:- The Applicant is offering several individual services in two different combinations to the recipients, depending upon their need for lodging facility. Each of the recipients, however, is charged a consolidated amount for the combination of services he wants to enjoy. The combination of services is, therefore, offered as a mixed supply within the meaning of Section 2(74). In accordance with Section 8(b) of the GST Act it is stated that, “a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax - each of the combinations includes services taxable at 18% rate, which is the highest rate applicable to the services being offered vide Section 8(b) of the GST Act. Being mixed supply, value of the entire combination of services offered is taxable at 18% rate. Sl. No. 66 of the Exemption Notification is applicable to the services provided by or to an educational institution, as defined under clause 2(y) of the said notification. The Applicant is not an educational institution within the meaning of the above clause. Although the services are provided in terms of an MOU with St Michael’s School, the Applicant charges the consideration on the individual students. Being liable to pay the consideration, such students are, therefore recipients of the Applicant’s services and not the educational institution. Sl. No. 66 of the Exemption Notification is, therefore, not applicable.
|