TMI Blog2020 (5) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... renting out rooms but rather is renting out units of accommodation comprising of 2 bedrooms, hall, kitchen, restroom, toilet. The entire unit with facilities like water, electricity, cot, bed, pillow, bedspread and air-conditioner is given out on rent. The devotee is also given cooking facility in this unit. Therefore, a unit of accommodation of this kind which is termed by the Appellant as a 2BHK Category I type of accommodation cannot be considered as renting of rooms and will not be covered in the entry SI.No 13 of Notification No 12/2017 CT (R) dated 28-06-2017 - Similarly, the renting out of beds in a dormitory is also not akin to renting of rooms and hence it will not qualify for exemption under clause 13(b) of the said Notification. We agree with the ruling of the lower Authority and hold that the renting of the 2 BHK unit and the dormitory will be chargeable to GST as a single unit where the value of supply will be the charges for the full 2BHK unit / dormitory and not the charges for each room / bed and is liable to tax.in terms of entry SI.No 7 of Notification No 11/2017 CT(R) dated 28-06-2017 as amended by Notification No 20/2019 CT (R) dated 30-09-2019. AAR ruling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility and no cleaning services. iii. Category-III: Single room, 100 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, common rest rooms and toilets and no cleaning and cooking facility services. iv. Category-IV: Single room, 150 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC and having rest room and toilet. No cleaning and cooking facilities. v. Category-V: Dormitory consisting 12 beds, including facilities such as water, electricity, two AC, bed, pillow, bedspread, common rest rooms and toilets. Charges per bed ranging from ₹ 250-00 per day. vi. Category-VI: Renting of space for stalls The Appellant also provided food and beverages to the devotees at subsidized rates. Further the Appellant also provided space without consideration to other registered persons who supplied food and beverages to the devotees for consideration, which directly flows from devotees. 5. In this connection the Appellant sought an advance ruling in respect of the following question: a) Whether the applicant is liable to pay tax on renting of temporary residential rooms for consideration to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om outside, if he does not satisfy all the conditions prescribed for a pure agent (i.e the services must be procured from suppliers of accommodation service in addition to the service he supplies on his own account). 7. The Appellant was aggrieved by the ruling given in respect of the following two categories viz: Renting of dormitory consisting of 12 beds where the charges per bed is ₹ 250 per day, including facilities such as water, electricity, two AC, bed, pillow, bedspread, common rest rooms and toilets. Renting of 2 BHK having 430 sq.ft. where charges per room is less than ₹ 1000/- per day, including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC, and having two rooms, hall, kitchen, rest-room + toilet, with cooking facility and no cleaning services. 8. Aggrieved by the ruling on the above two aspects, the appellant has filed this appeal on the following grounds. 8.1. The Appellant submitted that entry No 13(b) of Notification No 12/2017 CT (R) dated 28-06-2017 provides exemption to renting of room where the charges are less than ₹ 1000/-per day. It is generally accepted rule and normal business transaction that ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned order of the lower Authority dated 30.09.2019 was received by the Appellant on 10.10.2019. In terms of Section 100(2) of the CGST Act, every appeal to this Authority should be filed within a period of 30 days from the date on which the Advance Ruling order is communicated to the aggrieved party. The proviso to Section 100(2) empowers this Authority to condone the delay in filing the appeal by another period of 30 days. In this case, the due date for filing the appeal was 09-11-2019 but the Appellant has filed the appeal on the 3rd December 2019 after a delay of 23 days from the due date for filing appeal. The Appellant has stated that the delay had occurred since the person in charge of taxation matters was busy with the religious function organised by the Appellant. Considering the submissions made by the Appellant, the delay in filing the appeal is hereby condoned in exercise of the power vested in terms of the proviso to Section 100(2) of the CGST Act. 12. The issue which is in appeal is limited to the point whether exemption from GST is available to the Appellant on the renting of dormitory consisting of 12 beds and renting of 2 BHK where the charges per bed (in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a 2 BHK unit and per bed for the dormitory and in both the cases, the charges are less than ₹ 1000/- per room/bed per day. 13. For better clarity, the entry Sl.No 13 of exemption Notification No 12/2017 CT (R) dated 28-06-2017 is reproduced below: SI. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate 13 Heading 9963 or Heading 9972 or Heading 9995 or any other Heading of Section 9 Services by a person by way of- (a) conduct of any religious ceremony; (b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an institution registered under sub-clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act: Provided that nothing contained in entry (b) of this exemption shall apply t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lore North Taluk where the religious event was conducted. We find that the Appellant is not renting out rooms but rather is renting out units of accommodation comprising of 2 bedrooms, hall, kitchen, restroom, toilet. The entire unit with facilities like water, electricity, cot, bed, pillow, bedspread and air-conditioner is given out on rent. The devotee is also given cooking facility in this unit. Therefore, a unit of accommodation of this kind which is termed by the Appellant as a 2BHK Category I type of accommodation cannot be considered as renting of rooms and will not be covered in the entry SI.No 13 of Notification No 12/2017 CT (R) dated 28-06- 2017. Similarly, the renting out of beds in a dormitory is also not akin to renting of rooms and hence it will not qualify for exemption under clause 13(b) of the said Notification. We agree with the ruling of the lower Authority and hold that the renting of the 2 BHK unit and the dormitory will be chargeable to GST as a single unit where the value of supply will be the charges for the full 2BHK unit / dormitory and not the charges for each room / bed and is liable to tax.in terms of entry SI.No 7 of Notification No 11/2017 CT(R) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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