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2022 (6) TMI 697 - AAR - GSTClassification of services - Hostel Accommodation Charges per Hostel Seat provided by the Mody Education Foundation (MEF) to the students of Mody University of Science and Technology (MUST) having value of service upto Rs. 1000/- composite supply - charitable activities or not - Applicability of exemption under entry no. 14 of the notification no. 12/2017 dated 28-06-2017 - HELD THAT:- In the present case, it is observed that the applicant will provide single service of 'hostel accommodation' for a single price of less that Rs. 1000/- per Hostel Seat. Being single taxable service, the supply is not a Mixed Supply under GST - supply of 'hostel accommodation service' by the applicant in the present matter is neither a composite supply nor a mixed supply. Rather it is a supply of 'residential or lodging service' at Hostel which would be provided to students of MUST. On gone through of exemption Entry No. 14 of the Notification No. 12/2017-CT (R) Dated 28.06.2017 as well as CBIC's Circular No. 32/06/2018-GST dated 12°February, 2018, it is found that the description of service is user based, meaning that, if the accommodation is used for residential or lodging purpose then it is immaterial who the user is. The said entry mentions “Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes”. The word 'hostel' not being specifically mentioned implies that the same would be covered under the term 'Whatever name called' - the scope of the entry is restricted to use of the accommodation unit for residential and lodging purpose only. The service of hostel is optional and not coming out from the package and separate consideration will be charged for providing such hostel facility to the students. In fact, the hostel fees are not a part of any package concerning commercial training & coaching services rendered by the applicant. The Applicant is exclusively providing the Hostel Accommodation Service in isolation and no other service is clubbed or bundled along with the Hostel Accommodation Service. Thus, there is no question of Composite Supply u/s 2 (30) of the GST Act or Mixed Supply u/s 2(74) of the GST Act in the Case of the Applicant - Considering the provisions of Entry No. 14 of the Notification No. 12/2017-CT (R) Dated 28.06.2017 and clarification given by CBIC in Circular No. 32/06/2018-GST dated 12th February 2018, it is concluded that, the applicant's activity is satisfying the conditions of Entry No. 14 of said Notification No. 12/2017-CT (R) Dated 28.06.2017 and hence would be exempted from GST.
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