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2022 (1) TMI 1109 - AAR - GSTLevy of GST - Aahana Naturopathy Centre, wherein they are providing various services in the form of Nature cure (drugless cure) 8& Yoga therapies(Health care services) - simultaneous running a Resort namely “Aahana-The Corbett wilderness” - health care services or not - bundled services or composite supply of services - benefit of entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 - to be classified under SAC Heading 9993 or not - HELD THAT:- The true and actual picture emerges that the consideration is solely dependent on the type of room/package opted by the customer, which also include facilities at Aahana Naturopathy Center along with the charges for fooding and lodging, excursion and other leisure, fun and frolic activities etc. (illustrative but not limited). And that there is no doubt and admittedly proves that these wellness facilities/ program of naturopathy/yoga at AAHANA NATUROPATHY CENTRE are provided at five star luxury wellness retreat and the same can be availed/ utilized by the customer/ client /guest, while holidaying with AAHANA THE CORBETT WILDERNESS and the customer/ client /guest need not find special time - This goes on to substantiate that the facilities of naturopathy at AAHANA NATUROPATHY CENTRE are not independent of the facilities at AAHANA THE CORBETT WILDERNESS, but is part and parcel of the packages offered by them to their customers/ guest, who come to the resort to relax, enjoy and to have fun and frolic etc., but not in any way for the specific purpose of treatment of any disease chronic or otherwise. The fact and the images indicates that the total consideration revolves around various factors viz. the package opted by the customer, type of room and whether single or double occupancy. This fact proves that the stay is mandatory and the charges of stay depend on the above factors. Thus, it is observed that the element of accommodation becomes the primary activity in the entire package. The entire package consists of more than one components of supply/ services and the wholesome package would not be possible without the services of fooding and lodging etc. In other words, the packages offered by the applicant are naturally bundled and would be aptly covered under the definition of Composite Supply. Further, the principal supply would be the accommodation services since the therapy can in no way be administered without accommodation. In fact, there is no option available for the customer to avail the wellness package without opting for the accommodation inside the resort - the accommodation service attains the nature of the principal supply and the other components attain the nature of ancillary services. Further it is a fact on record, which is a very important point in whole scenario, that the “Aahana Naturopathy Centre” is an unit of the applicant “The Corbett Nature Reserve” whose primary and main business activity is “running a resort with the name Aahana-The Corbett wilderness”, hence admittedly the resort run by the applicant is precursor of the principal supply and all other activities/ services provided by the applicant are ancillary in nature, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, which are naturally bundled to principal supply. In view of Section 8(a) of the CGST Act, 2017, it can be seen that a composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. Therefore, in the instant case, the composite supply of services would be treated as a supply of accommodation service falling under Heading 9963 and specific Heading 9963 11 (Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like) as per Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017. The supply of services provided by the applicant, which is a composite supply, has been classified under sub-heading No. 996311 under 'Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like'. The exemption at Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is applicable to services falling under the Heading 9993. However, the nature of services provided by the applicant is covered under the sub-heading 996311 - the exemption available at Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28- 6-2017 is not applicable to the applicant.
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