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2019 (7) TMI 847 - AAR - GSTClassification and nature of services - Service provided by the applicant to the delegates and exhibitors - activities involved are, Technical Seminars, Access to exhibition, Hotel Room Accommodation, Cultural programs, lunch & dinner and Airport Pick Up & Drop etc. - N/N. 11/2017- CT(R) dated 28.06.17 - Principal supply - composite supply - HELD THAT:- In the instant case the provision applicable is ' a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply - Hence, the composite supply provided by the applicant to the delegates shall be treated as a supply of service of organization of conference - The services by the applicant to the delegates which is a composite supply involving principal supply of organising conference is as per provisions of the GST act cited above is classifiable under HSN 998596 and taxable at the rate of 18% GST. The consideration, i.e. exhibition participation fees will be paid by the exhibitors to the applicant. The participation fee for exhibition is charged from the exhibitors against the service of organizing trade show. Hence such service shall be classifiable under HSN 998596 (i.e. events, exhibitions, conventions and trade shows organisation and assistance services) and applicant is liable to pay tax at the rate of GST (SGST 9%+ CGST 9%). Brand promotion packages - nature of service and classification - N/N. 11/2017-CT(R) dated 28.06.17 - Whether the applicant is liable to pay tax on services provided to the brand promoters or the liability to pay tax on such services falls on recipient under reverse charge according to Notification No. 13/2017 - Central Tax (Rate)? - HELD THAT:- The brand promotion packages offered by the applicant should be classifiable under HSN 998397 having description ‘Sponsorship services and brand promotion services’ taxable at the rate of GST (SGST 9%+ CGST 9%). The sponsorship service is specifically covered under services liable to tax on reverse charge basis under Section 9(3) of CGST Act, 2017 vide Notification No. 13/2017 - Central Tax (Rate) dated 28.06.2017 - the brand promotion packages offered by the applicant to partnership firms and body corporate do not fall under the category of sponsorship but purely branding. The applicant is liable to pay tax on such services under normal charge only (not under reverse charge basis). The service of brand promotion is classifiable under the combined entry HSN 998397 having description ‘Sponsorship services and brand promotion services’ taxable at the rate of 18% GST (SGST 9%+ CGST 9%). and the applicant shall be liable to pay tax on such services under normal charge only. Bundling of services - HELD THAT:- The bundle of services shall qualify as a composite supply by the hotel where accommodation service shall be the principal supply since it is the predominant element of supply made by the hotel. According to Section 8 of GST Act, 2017 such composite hotel shall be treated as supply of accommodation service (accommodation being the principal supply). Input tax credit - Services provided by the hotel including accommodation, food & beverages - Supply of food and beverages by outside caterers - Services provided by event manager like pickup & drop, exhibition stall setup, tenting, etc. - HELD THAT:- Input Tax Credit of CGST and SGST charged by the hotel on the composite supply of accommodation service shall be available to the applicant since such supply will be used in the course of business and it is an eligible credit in terms of Section 16 of GST Act, 2017. Input tax credit - food and beverages supplied by outside caterers - Section 17 (5) of GST Act, 2017 - HELD THAT:- It can be concluded that ITC of tax paid on food and beverages will be available to the applicant because the applicant will use such inward supply as an element of an outward supply of event organization which is a taxable composite supply. Input tax credit - rent-a-cab service - HELD THAT:- Since the applicant will use such inward supply of rent-a-cab service as an element of outward supplies of event organization and brand promotion which are taxable composite supplies, therefore ITC of tax paid on rent-a-cab service shall be available to the applicant.
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