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2020 (4) TMI 695 - AAR - GSTClassification of supply - Benefit of exemption / Rate of GST - Hostel accommodation - Exemptions under N/N. 12/2017 - Central Tax (Rate) vide entry 14 - whether hostel accommodation is treated at par with accommodation of hotels, inns, guest houses, etc., and accordingly chargeable at different GST rates based on the daily tariff per unit? - HELD THAT:- The supply of services by a hotel, inns, guest houses, clubs or campsite or any other commercial place, by whatever name called, for residential purposes would be exempted if the declared tariff of a unit of accommodation is below ₹ 1,000 per day or equivalent, as per entry no.14 of the Notification No.12/2017 -Central Tax (Rate) dated 28.06.2017. If it exceeds ₹ 1.000-00 per day or equivalent then the services become taxable as per entry no.7 of the Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017. Proposed Tariff - HELD THAT:- The monthly rent charged is ₹ 12,500-00 at maximum and the daily tariff would amount to ₹ 416-00, which is less than ₹ 1000-00 per day. Further, even when given on daily basis, it is seen that the maximum amount charged is ₹ 500-00 per day which is below ₹ 1000-00 per day. Hence the tariff amount per unit of accommodation is less than ₹ 1000-00 per day. Hence the service provided is where the tariff is below ₹ 1,000-00 per day or equivalent - Further, the entry no.14 of Notification No.12/2017-Central Tax (Rate) is analysed and it says all services of SAC 9963 provided by such a supplier having a declared tariff of less than ₹ 1000-00 per day or equivalent would be exempt. Further since in this supply, all the supplies are made as a package with the accommodation service being the principal service, the entire supply would be treated as a composite supply of accommodation service as per section 8 of the CGST Act, 2017. Hence, the proposed supply of services in question by the applicant would not be liable to tax as per entry no.14 of the Notification No.12/2017 -Central Tax (Rate) dated 28.06.2017 as amended from time to time. Provision of other services in addition to the facilities that are in addition to the compulsory services provided and charge the clients for the same - whether these amount to providing of services under a separate contract and as per the facilities provided, as these services are independent of the accommodation services provided? - HELD THAT:- The Group 9963 of the Service Accounting Codes as annexed to Notification No.11/2027-Central Tax (Rate) relates those services which are coming under Food, Edible preparations, alcoholic and non-alcoholic beverages serving services, and if the additional services provided by the applicant belong to the Group 9963, then the turnover of these services will also be exempt as they are covered under the entry 14 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. But those services which are supplied independently to the clients which do not belong to the Group 9963 are liable to tax at appropriate rates, provided that the applicant is liable for registration - If the applicant charges additional charges for extra facilities opted by the inhabitants in addition to the facilities that are currently included in the tariff received by the inhabitants but the overall price would be less than the present exemption limit of ₹ 1,000-00 per day per unit, then the same is liable to tax at the rates applicable to them as they are independent supplies, if they do not belong to the Group 9963. If they belong to the Group 9963, then the same are exempt as per entry no.14 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017.
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