Home Case Index All Cases GST GST + AAAR GST - 2022 (5) TMI AAAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 407 - AAAR - GSTClassification of services - Hostel Accomodation services - composite supply - caritable activitties or not - Whether Hostel facility which includes Lodging and Boarding service provided by appellant to the students of MUST having value of service upto Rs.1000/- per day would be eligible for exemption under entry no. 14 of the notification 12/2017 CTR Dt. 28-06-2017? - applicability of N/N. 12/2017-CT (Rate) - HELD THAT:- As per Section 2 (74) of the CGST Act the term “mixed supply” means two or more individual supplies of goods or services, or any combination thereof made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. In the instant case the appellant is supplying services of food along with Hostel Accommodation service. In view of the discussion, it is held that supply of food with Hostel Accommodation service is not naturally bundled in normal course of business. It has been also informed by the appellant that a cafeteria (canteen) has been provided for day scholars, in which they can optionally take snacks and F&B as per their choice. In the present case, others services being provided by the Appellant are not naturally bundled or ancillary to Hostel service as the inhabitants of Hostel seats can avail these services from any other source. In fact the inhabitants have been restricted from sourcing these other services from any other person. Consequently, the inhabitants have to avail these services from the Appellant. In such situations, the other services are not ancillary to or bundled with the Hostel service. The word ‘per unit of accommodation’ should be understood as per general practice adopted by large number of service provider in similar business model. In hotels, generally it fixes per room, per suit whereas in hostels, inns and dharmshalas, it fixes per room, per bed, per seat and per person. From the facts mentioned by the appellant, it would emerge that they provides accommodation service in hostel and fix the tariff on the basis of hostel seat, therefore the contention of appellant is agreed upon and it is found that hostel seat should be considered as a unit of accommodation. Appeal disposed off.
|