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TMI Blog2020 (9) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... by M/s. Crown Tours and Travels, Opposite Rajputana Shereton Hotel, Jaipur, Rajasthan 302006 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under: - a. Classification of goods and /or services or both * Further, the applicant being a registered person (GSTIN is 08AAJFC6249G1ZA as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. A. SUBMISSION AND INTERPRETATION OF THE APPLICANT: Crown Tours and Travels (hereinafter referred as 'the Applicant) is engaged in business of providing tour services to the tourists identified by the Main Tour Operator. In transaction which the Applicant intents to undertake, the Applicant is going to provide local transportation services along-with services like elephant ride, lunch/dinner, local sightseeing, guide services etc. As a practice in the industry, there is a contractual understanding between the tourist and the main tour operator to provide a complete packaged tou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour. [(ii) Services by way of house- keeping, such as plumbing carpentering, etc. where the supplying such person service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. 2.5 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. 49 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to place esp. a holiday comprising visits to a number of places on a route through an area. Hence, Tour' means a travel from one place to another by any mode of transportation; 8. that reference can also be made to the meaning of the term Tour' as understood in common parlance. In common parlance, Tour is understood as tourists, usually taken in groups by the tour operator by any mode of transport from one place to another and, en route or at the terminal place, local sight-seeing trips (including visits to zoo, museum, monuments and other historic spots etc.), visits to temples or other places of worship, boat cruising in lakes, trips to hill resorts, etc,. Thus, tours are organized or facilitated for the tourists by the tour operator. The definition of the Tour Operator as per Rate Notification also contains that the tours may include arrangements for accommodations, sightseeing and other similar services; 9. that in the transaction which the Applicant intents to undertake, the Applicant needs to provide local transportation service to the tourists along with services like local sightseeing, elephant or camel joy rides, lunch and dinner at local restaurant, boat ride. The w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncillary to the Tour', hence, it is humbly submitted that the Applicant in present case shall be construed to be supplying tour operator services; 14. that in the light of above submission, it is humbly submitted that services of local transportation along-with sightseeing, guide services, elephant joy ride provided by the Applicant to the Tourist are covered under 'Supply of tour operators service'; 15. that as per the Rate Notification, the rate of 5% is applicable on the supply of Tour Operator services under Heading 9985(i) can be availed in following cases: Input Tax Credit (hereinafter referred as 'ITC) in respect of goods and services used in supplying the service has not been taken except in case where ITC is in respect of input services in same line of business i.e. Tour operator service procured from another tour operator; 16. that the bill issued by the supply for services indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for tour including the charges for accommodation and transportation required for such tour; 17. that in respect of the condition no. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with its rate (as shown in the past bill). However, the nature of the service will be that of Tour Operator service'. Accordingly, it is submitted that since, the Applicant intents to raise a single invoice for all the services provided by it and also charge gross amount on the bill which will be inclusive of charges for all the services provided by the Applicant, the condition no. (ii) is also fulfilled; 21. that it is humbly submitted that in case the services provided are in the nature of 'supply of service by tour operator', then in that case, the services provided will not be covered under heading 9985(iii) of the Rate Notification. Reliance is placed on the Advance Ruling passed in case of TUI India (P.) Ltd. by Authority for Advance Ruling, Delhi ([2019] 28 GSTL 346 (AAR - New Delhi)) = 2019 (8) TMI 90 - AUTHORITY FOR ADVANCE RULINGS, NEW DELHI. It is humbly submitted that, in present case the services provided by the Applicant are covered within the tour operator services. Thus, the same will fall under the heading 9985(i) and the rate applicable therein 5% will be applicable; 22. that in light of above submission, it is humbly submitted that as per the Rate Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020 (1) TMI 1005 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN (hereinafter the RAAR Order). 3. The facts submitted by the applicant in its earlier application and in present application are similar except some submission. In the present application, the applicant has further from previous application submitted that it is also providing transport services to tourists besides service of elephant ride, guide services and sightseeing. Further, that the MTO treats the supply by the applicant a tour operator service as applicant, is providing transportation besides other tourist services. 4. We find that only additional fact from previous application is service of transportation provided by the applicant. So, question before us to decide is whether applicant will fall under definition of Tour Operator or not as per definition and condition enumerated in Serial No. 23(i) Chapter head 9985 of Notification No. 11/2017-Central Tax (rate) dated 28.06.2017 (as amended). 5. The Notification No. 11/2017-Central Tax (rate) dated 28.06.2017 (as amended) in Entry Number 23 (i) define Support Services under Chapter heading 9985. The relevant portion of the Notification is as under- Sl.No. Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the charges of accommodation and transportation required for such a tour. 6. We find that, the first condition is related to restriction of input tax credit whereas second condition is related to criteria for inclusion of charges of accommodation and transportation in the bill of a tour operator. 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. Whereas, 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. F. In view of the foregoing, we rule as follows: - RULING The services provided by the applicant do not fall under the purview of Serial No. 23 (i) {Chapter hea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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