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2021 (11) TMI 858 - AAR - GSTClassification of GST - applicant to provide the boarding, lodging facilities and such other agreed services, to AMSL - composite supply or a mixed supply? - principal supply or not - exemption under N/N. 12/2017-CT (Rate) dated 28.06.2017 - difference of opinion - HELD THAT:- The applicant is engaged in the business of hospitality providing boarding, lodging facilities and such other services to AMSL, who is into training youth in various healthcare’ related vocational programs as part of implementation of its projects under Deen Dayal Upadhyay Grameen Kaushalya Yojana (DDU-GKY). AMSL has engaged the applicant to provide the boarding, lodging facilities and such other agreed services, to AMSL in line with the SOP given by the Government of India for the implementation and furtherance of its projects under Id DDU GKY. As per the terms of agreement entered into by the applicant with AMSL, the consideration payable shall include fixed and variable cost towards accommodation and provision of food and other facilities based on the actual number of candidates availing the services at the hostel. The applicant has stated that, their primary and predominant activity is to provide accommodation to the candidates at the hostel, the supply of food and other amenities is ancillary but an integral part of the principal supply. The applicant has stated that the activity is a composite supply, where the principal supply is accommodation services. The applicant has stated that SAC 996322 shall be applicable to their activities and the services are exempted under Sl.no. 14 of Notification no. 12/2017CT (Rate) dt. 28.06.2017. From the Schedule of Charges (Schedule III) of the Agreement, it is seen that ₹ 3500/ is fixed towards the Rent per Candidate, per month for regions of Chennai and ₹ 3000/ towards the Rent per candidate for the accommodation per month in any region out of chennai, which translates to per day equivalent tariff of ₹ 117/₹ 100 and the consideration for other supplies is ₹ 183/₹ 150 per day. The total consideration/ equivalent declared tariff as per the agreement for the composite supply per day, amounts to ₹ 300/- ₹ 250/- per candidate per day which is below the specified limit of ₹ 1000 per day. Therefore, I find that the exemption at SI.No. 14 of Notification no.12/2017 CT(Rate) dt.28.06.2017 is applicable to the case in hand. The supply envisaged in the agreement entered with AMSL is a composite supply of hospitality services in which provision of accommodation, food and other amenities are naturally bundled in the course of business and supplied in conjunction. The provision of accommodation is the principal supply, being provided to all the candidates (headcount wise) and the applicable SAC is 9963 and per day equivalent tariff being less than ₹ 1000, the exemption provided under SI.No.14 of Notification no. 12/2017-CT(Rate) dt.28.06.2017 is applicable to the ease in hand. In view of the difference in the opinions of the Members, the case is referred to the Appellate Authority for hearing and decision on this issue in terms of Section 98(5) of the CGST/TNGST Act 2017, which provides that where the members of the Authority differ on any question on which the advance ruling is sought, they shall state the point or points on which they differ and make a reference to the Appellate Authority for hearing and decision on such question.
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