TMI Blog2020 (9) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... transportation in the bill of a tour operator; and The second condition clearly emphasise that a bill issued by a tour operator for supply of its services should be inclusive of charges of accommodation and transportation required for such a tour. The conjunction and clearly explains that accommodation and transportation, both are must elements for a tour whereas conjunction or may have rendered option between accommodation and transportation. The applicant is rendering only transportation with some ancillary services and not accommodation, as such does not satisfy the conditions as mentioned under Serial No. 23 (i) {Chapter heading 9985} of Notification No. 11/2017-Central Tax (rate) dated 28.06.2017 (as amended), therefore, rate of GST 5% is not applicable. - RAJ/AAR/2020-21/06 - - - Dated:- 23-7-2020 - J.P. MEENA AND HEMANT JAIN Present for the applicant : Shri Rahul Lakhwani (Authorised Representative) Note: Under Section 100 of the CGST/ RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/ RGST Act, 2017, within a period of 30 days from the date of service of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Applicant to the Tourist i.e. local transportation services along-with services like guide, elephant ride, local sightseeing. Thus, the amount charged from Main Tour Operator will be inclusive of charges in respect of all the services which are provided by the Applicant to the tourist. A sample copy of the service order in respect of the transaction which the Applicant intents to undertake and the copies of the invoice raised by the Applicant have been already submitted with the application; 3. that under Section 9 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as CGST Act), the Central Government by way of Notification shall prescribe the rate of central tax which shall be applicable on supply of goods or services or both. Pursuant to Section 9 r/w Section 11, 15 and 16 of the CGST Act, the Central Government vide Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 (hereinafter referred as Rate Notification ) notifies rate of 2.5% on supply of Tour Operator services under Heading 9985(i) subject to certain conditions. Similar rates have been prescribed under Rajasthan Goods and Services Tax Act, 2017 (Hereinafter referred as RGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person who provides services in the nature of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport. Further, the rate of 5% under the Rate Notification is subject to fulfilment of the conditions mentioned in the said Rate Notification; 5. that invoices submitted by the Applicant relates to the past transactions. In the said transactions, the Applicant though raised a single invoice but charged rate of 5% on the local transportation services under heading 9964 and rate of 18% on sightseeing services, guide services, elephant ride services under heading 9985 (iii). However, it was pointed out by the service recipient i.e. Main Tour Operator that as per the market practice, when the local transportation services are provided along-with services like sightseeing, elephant ride, guide services, rate of 5% under heading 9985 (i) is applicable. Accordingly, the current advance ruling has been sought to get clarity on the said matter; 6. that whether the rate of 5% under heading 9985(i) is applicable on transaction which the Applicant intents to undertake wherein a single i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeing and other similar services by any mode of transport. Thus, the Applicant provides the service of organizing and conducting a Tour for the tourists; Meaning of term Tour Operator 10. that in the Rate Notification, the term Tour Operator has been defined as the person who is engaged in the business of planning, scheduling, organising, arranging tours by any mode of transport. The relevant definition is reproduced below: Tour operator means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport , and includes any person engaged in the business of operating tours. 11. that as per the above definition, the Tour Operator must provide the transportation service. It is humbly submitted that in transaction at hand, the Main Tour Operator specifies the services which has to be provided to particular tourist or group of Tourist. Accordingly, the Applicant intents to organize and arrange the tour for the Tourist(s) which includes local transportation along-with sightseeing, elephant ride, guide services. Thus, It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t been taken except in case wherein ITC is in respect of input services received from another Tour operator. Thus, for the satisfaction of the said condition, the person who is supplying the tour operator services cannot avail the ITC of the input services which it has used in supplying the said services except in case such input services has been received from another tour operator. In present case, the Applicant intents to comply with the said condition and not avail the ITC in respect of input services it has used in supplying the said services to the tour operator. Thus, condition no. (i) is satisfied for the transaction which the Applicant intents to undertake; 18. that on perusal of condition no. (ii), it can be construed that the bill which is issued by the Tour operator should be inclusive of all the charges including charges of accommodation and transportation required for such a tour. The definition of the term tour operator states that the person providing the tour operator s services may or may not provide the service of accommodation. Thus, it is humbly submitted on the co-joint reading of the condition no. (ii) with the definition of Tour Operator and applying t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tour operator services . Further, the condition no. (i) and (ii) are also fulfilled for the transaction under consideration. Thus, for said transaction, the rate of 5% is applicable. B. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT Whether the rate of 5% under heading 9985 (i) is applicable on transaction which the Applicant intents to undertake wherein a single invoice is raised in respect of all the services i.e. local transportation services along-with services like sightseeing, tour guide, elephant ride etc., provided by the Applicant to The Main Tour Operator? C. PERSONAL HEARING In the matter personal hearing was granted to the applicant through (Authorised video conference on 10.07.2020. Shri Rahul Lakhwani Representative) of applicant appeared for personal hearing. During the personal hearing, he reiterated the submissions already made in the application. He further requested that the case may be decided at D. COMMENTS OF THE JURISDICTIONAL OFFICER: The jurisdictional officer i.e. the Deputy Commissioner, State Tax, Circle-B, Jaipur Zone-III, Zonal Kar Bhawan, Jhalana Doongri, Jaipur, Rajasthan 302004 has submitted his comments vide letter d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 23 Heading 9985 (Support services) (i) Supply of tour operators services. Explanation .- tour operator means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may arrangements include for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours. 2.5 1. Provided that credit of input tax charged on goods and services used in supplying the service [, other than the input tax credit of input service in the same line of business (i.e. tour operator service procured from another tour operator)] 48 has not been taken [Please refer to Explanation no. (IV)]. 2. The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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