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2022 (3) TMI 850 - AAR - GSTExemption from GST or not - Hostel facility which includes lodging and Boarding service provided by MEF to the students of must having value of service upto ₹ 1000/- per day - naturally bundled services or not - applicability of exemption under entry no. 14 of the notification 12/2017 CTR Dt 28.06.2017 - HELD THAT:- Naturally bundled services are those services wherein one of the services is the main service and the other services combined with such service are in the nature of incidental or ancillary services which help in better enjoyment of a main service - If current nature of supply of services is tested based on above factors, it can be ascertained that the provision of hostel accommodation could be a principal supply but ancillary services like food cannot be said to arise naturally with the principal service of hostel accommodation and therefore are not bundled naturally with principal supply - here the said supply is not a Composite Supply, therefore, the facts of the case can be examined in respect of Mixed Supply. The services supplied by the applicant such as hostel accommodation, food etc. to the student of Rs. Less than 1000/- per day per student is not a Composite supply, hence, the services the applicant is supplying is Mixed Supply as per GST Act, 2017 and the applicable rate of tax is the highest rate applicable to the various services supplied by the applicant. The exemption to accommodation service is applicable in respect of a unit of accommodation where tariff is below ₹ 1000/- per day. Notification No. 11/2017-CT(Rate) as discussed provides applicable GST rate as per declared tariff of a unit of accommodation. Further, accommodation having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent, the GST rate will be charged 12%, further accommodation having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent, the GST Rate will be charged 18%, further accommodation having declared tariff of a unit of accommodation of seven thousand five hundred rupees & above per unit per day or equivalent, the GST Rate wall be charged 28% - the applicant has stated in their application that they will charge below ₹ 1000/-per student per day, but it has not been declared by the applicant that how many Student will stay in a room, if more than one students wall stay in a room then GST rate will be chargeable, since the applicant did not make clear that how many students wall stay in a room/unit, hence considering non-clarity of tariff of a unit of accommodation, the GST rate as per notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 will be applicable to the applicant. Further, the applicant is providing service of serving of food to students in hostel. The said service is classifiable under HSN 9963 as provided under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and GST rate will be applicable as per the above notification - the services supplied by the applicant is a Mixed Supply and highest rate of GST will be applicable amongst services provided by the applicant to students in hostel. The applicant would not be eligible for exemption under entry no. 14 of the Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017.
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