TMI Blog2019 (4) TMI 1451X X X X Extracts X X X X X X X X Extracts X X X X ..... extra charge. It has categorically been stated by the applicant that no other charges other than above amount is collected from the occupants on account of other allied facilities being provided. The amount received for providing taxable supplies in hostel under Notification No. 12/2017 (Rate) illustrating lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent are exempt. The lump sum amount received per unit (bed) per day against the accommodation services in hostel is to be treated as exempt supply. The amount received for providing taxable supplies in hostel under Notification No. 12/2017 (Rate) illustrating lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent are exempt. The lump sum amount received per unit (bed) per day against the accommodation services in hostel is to be treated as exempt supply. - STC/AAR/11/2018 - - - Dated:- 2-3-2019 - Smt. Kalpana Tiwari Joint Commissioner And Mr. Rajesh Kumar Singh, Additional Commissioner PROCEEDINGS [U/s 98 of the Chhattisgarh Goods Services Tax Act, 2017 (herein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred to as The Hostel is situated at Samta Colony, Raipur, Chhattisgarh. 3. That keeping in view of the facts that the trust is carrying the charitable activities the Income tax Department has given the exemption certificate under section 12A of the Income Tax Act, 1961 as to the Hostel charges from the boarders in order to bear its maintenance and administrative costs. Accordingly the Trust is not supposed to pay any income tax on the receipts of the hostel, as the running of hostel is covered under the charitable activity. 4. Hostel has been established with the prime motto of upliftment of the girls who are residing outside their homes for educational curriculums. For this purpose, the hostel is designed and constructed so as to provide residence / accommodation to the girls who arrive at Raipur to pursue their education. Thus, the hostel is providing basic facilities required for stay to pursue studies, which includes well-furnished residence, round the clock security, homely ambience, nutritious food, ample parking space etc. 5 Further, in case, any boarder want to reside in hostel for few days, in such case, the boarder is allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e costs of running a hostel. 1.2 Hostel is nothing but giving residential dwelling on rent to be used for the purpose of residence. The word hostel although has not been defined under Central/State/Integrated/UT Goods and service Tax Act, however as per the definition prescribed under Cambridge Dictionary as: A large house where people can stay free or cheaply: a student hostel . The hostel is established only with a moto of providing residence to girl students that too solely for residential purpose against a nominal consideration hence it will be treated as providing the residential dwellings on rent. 1.3 That as mentioned above, in our considered view, since the hostel is providing the residence as hostel to girl boarders that too solely for residential purpose and therefore, the same is fully covered under the Entry No. 12 of Notification 12/2017 Central tax (rate) which prescribes that services by way of renting of residential dwelling for use as residence is exempted from GST. Therefore, the hostel is providing the residence to the occupants for which the hostel is charging the fee which is exempted from GST. 1.4 That the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the Exemption Notification has specifically taken the wide coverage so as to include even other related terms/places which is working as lodge/hotel/inn. In other words, the exemption notification is even applicable to other service provider who actually providing the services of giving the space on rent for residence and not falling under the definition/scope of hotel, inn, guest house club or campsite. As the Notification specifies the term by whatever name called which implies that even other related services providers will be exempted even though the same is not known to be hotels, inn etc. Therefore, in our considered view, exemption is not only to Hotel, guest house etc., but also to by whatever name called such as Hostel . For residential or lodging purposes, the hostel is providing residence to girl students and hence the same is nothing but used for residential and lodging purpose only. Having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent Since, hostel is charging 6000/- per month per child therefore, per day charges will approximately be ₹ 200/- per day. Thus, service provide by Hostel as mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blished principles of natural justice, personal hearing in the matter was extended to the authorized representative of the applicant and accordingly, Mr. J.K. Gupta (CA) and Shri Kamal Kishor Agrawal trustee appeared before us for hearing on 14.01.2019 and reiterated their contention. They also furnished a written submission dated 14.01.2019, which has been taken on record. Another hearing in the case was also extended to the applicant on 21-02-2019 when Mr. J.K. Gupta, C.A. and Mr. Kamal Agrawal attended and reiterated their contention. They sought advance ruling on whether the hostel which is providing the residence to students is required to charge GST or not? In this regards, they have submitted that they are providing the residence on rent for which they are charging lump sum charges for giving the residence. Further, they are also providing ancillary services such as food, parking with that lump sum amount only and that they are not charging any amount over and above. They have also submitted that since the principal supply is providing residence and therefore, it will be exempted from GST as envisages Notification 12/2017 Central tax. They have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- There are provision to accommodate the parents of occupants in the three guest rooms. Temple:- Hostel also comprises of a temple at the ground floor. Above mentioned facility and accommodation is provided in consideration of ₹ 24000/- charged quarterly from boarders. The receipts of above have been attached hereto. The applicant have applied to declare the above services to be treated as composite supply under section 2(30) of the GST Act. Following provisions of Chhattisgarh GST Act should be discussed before considering the applicant contentions: - For such supplies CG GST Act specifically provides as under:- Section-2(30):- composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning of mixed supply as when two or more supplies occurs against a single price and is different from composite supply, then it is termed as mixed supply , Section 2(30) specifies following determinants to determine composite supply:- 1. Two or more taxable supplies of goods or services or both, or any combination thereof, 2. Supplies are naturally bundled, 3. Supplied in conjunction with each other in the ordinary course of business, 4. One of which is a principal supply. With regard to above, on observation of documents/brochure/submitted by the applicant it is evident that the girls residing in both the hostels are provided with various facilities like food supply from canteen, parking space, coaching, library, entertainment which are all taxable supplies. Apart from above they are also provided with the provision of guest rooms for visiting parents of the occupants. All the facilities are only for the occupants of the hostels. The girls residing there are neither allowed to have food from outside nor are outsiders allowed to have food from hostel canteen. Thus the accommodation facility at host ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or per bed single room and rupees 6000/- per month per bed for rooms consisting of more than a single bed. As already discussed, no charges other than above are collected from the occupants on account of the allied facilities being provided or on account of other allied supply of services. Thus ₹ 28000/and ₹ 24000/- respectively are being collected from the occupants of Hostel, quarterly in lump sum. This amount is less than ₹ 1000/- per unit (bed) when computed on a daily basis. Such supply under GST gets categorized under Notification No, 12/2017 dated 28-06-2017 (Rate) (Serial No. 14) tariff heading 9963 services by a hotel, inn, guest house, club or campsite by whatever name called, for residential or lodging purposes having declared tariff of a unit accommodation below one thousand rupees per day or equivalent and accordingly merits treatment as nil rated liability. In view of the deliberations and discussions as above, we pass the following order: ORDER (Under section 98 of the Chhattisgarh Goods and Services Tax Act, 2017) No.STC/AAR/11/2018 Raipur, Dated 02/03/2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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