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2019 (9) TMI 1046 - AUTHORITY FOR ADVANCE RULING, WEST BENGALClassification of service - arranging the client’s accommodation in hotels - input tax credit of GST charged by the hotels - HELD THAT:- The Applicant is admittedly a tour operator. But the question on which the advance ruling is sought is whether it should continue to be classified as a tour operator when it merely arranges the client’s accommodation in hotels. It is not unusual for tour operators to bulk book rooms in hotels and release a few of them to clients who either do not book for the tour or prefer to reach by own arrangement and pay only for the accommodation - According to Explanation to Sl No. 23(i) of the Rate Notification, tour operator means any person engaged in the planning, scheduling, organising, and arranging tours by any mode of transport. Arranging accommodation might be provided as add-ons, but that is not the essence of the tour operating service. The Applicant’s service under focus in the Application is not, therefore, to be treated as that of a tour operator. The support services covered under Sl No. 23(iii) of the Rate Notification include services classified under SAC 998552. Services covered under SAC 998552 include arranging reservations for accommodation services for domestic accommodation, accommodation abroad etc. The Applicant’s supply is specifically covered and, therefore, classifiable under SAC 998552 - It is, therefore, taxable under Sl No. 23(iii) of the Rate Notification, and the Applicant is eligible to claim the input tax credit as admissible under the law. Since the Applicant’s supply is specifically covered under SAC 998552, we find no need to discuss on SAC 9997.
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