TMI Blog2019 (10) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner, Office of the Zonal Development Commissioner (Kerala and Karnataka Special Economic Zones) to all Developer, Co-Developers and Units of SEZs located in Kerala and Karnataka, in which it is stated that the Accommodation Services are added to the list of services to enable the SEZ Units to avail service tax benefits for their authorized operation - In view of the above, if the SEZ Unit is procuring the accommodation services for their authorized operation, the same would be covered under supply to SEZ Units and hence would be inter-State supplies and would be a zero-rated supply under sub-section (1) of section 16 of the IGST Act, 2017. In case of services provided to the SEZ Unit is not for authorized operations, then they wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat she is in the business of providing accommodation services to various corporates in Bengaluru and they include certain SEZ Units. However, The Pommels is located in Kalyannagar, Banaswadi which is outside the SEZ Zone. b. The applicant is providing accommodation services to the SEZ Unit employees for which the SEZ Unit had advised them to raise invoices with IGST at 0% as per section 16 of the IGST Act, 2017. c. The applicant states that as per Section 12(3) of the IGST Act, which determines the place of supply, since the supply has taken place outside the SEZ Zone, they are not entitled for IGST at 0%, but need to be charged IGST@ 18%. 4. Sri Eldho Oommen John, Operations Manager and Son of the Proprie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied; 5.3 In the present transaction under reference, the consideration for the accommodation services provided is payable by the company which is an SEZ Unit and hence as per clause (93) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.1 As per section 7(5) (b) of the Integrated Goods and Services Tax Act, 2017 (IGST Act in short), the supply of goods or services or both to a SEZ developer or a SEZ unit shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce. Whereas, as per section 12(3)(c) of the IGST Act, the place of supply of services by way of accommodation in any immovable property for organising any functions shall be the location at which the immovable property is located. Thus, in such cases, if the location of the supplier and the place of supply is in the same State/ Union territory, it would be treated as an intra-State supply. 1.2 It is an established principle of interpretation of stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their authorized operation, the same would be covered under supply to SEZ Units and hence would be inter-State supplies and would be a zero-rated supply under sub-section (1) of section 16 of the IGST Act, 2017. 5.9 In case of services provided to the SEZ Unit is not for authorized operations, then they would not be treated as supplies to SEZ Units and would not be covered under the zero-rated supplies but still would be a transaction covered under the IGST Act, 2017 and taxable at 18% with the place of supply being the provision of such services. 6. In view of the foregoing, we pass the following RULING The supply of accommodation services to the SEZ Units is an inter-State supply under clause (b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
