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2020 (9) TMI 295 - AAR - GSTClassification of services - Tour Operator service or not - rate of tax - local transportation services along-with services like sightseeing, tour guide, elephant ride etc., provided by the Applicant to The Main Tour Operator - taxable at the rate of 5% under Serial No. 23(i) Chapter head 9985 of Notification No. 11/2017-Central Tax (rate) dated 28.06.2017 (as amended) or otherwise? - HELD THAT:- The applicant is involved in supply of local transportation service and services like elephant ride, guide services and sightseeing to tourists engaged by various tour operators, also called in trade parlance as Main Tour Operators (hereinafter MTO). The tourists as discussed above are primarily engaged by MTO and thereafter delegated to the applicant and the likes. The above said Notification also delineates two conditions for a tour operator:- The first condition is related to restriction of input tax credit whereas second condition is related to criteria for inclusion of charges of accommodation and transportation in the bill of a tour operator; and The second condition clearly emphasise that a bill issued by a tour operator for supply of its services should be inclusive of charges of accommodation and transportation required for such a tour. The conjunction ‘and’ clearly explains that accommodation and transportation, both are must elements for a tour whereas conjunction ‘or’ may have rendered option between accommodation and transportation. The applicant is rendering only transportation with some ancillary services and not accommodation, as such does not satisfy the conditions as mentioned under Serial No. 23 (i) {Chapter heading 9985} of Notification No. 11/2017-Central Tax (rate) dated 28.06.2017 (as amended), therefore, rate of GST 5% is not applicable.
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