9911796707
TMI Blog2021 (7) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... set, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under. 3. Brief facts of the case: The new venture is a resort, in Muhamma in Alapuzha district. As part of this venture, house boats are being acquired and furnished. These house boats are to be used for cruises, overnight cruises and for day trips. Meals are provided as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rages (excluding alcohol) at a consolidated rate comes under classification 996415 (Local water transport services of passengers). Reference is made to the Explanatory Notes to the Scheme of Classification of Services under GST. In Chapter 99 under the Heading 9964 -Passenger transport services, the following classification appears under Heading 996415 - Local water transport services of passengers. The explanation states that this service code includes:- i. passenger transportation services on rivers or canals and on other inland waters by ferries including hydrofoils and hovercraft whether on a scheduled or non-scheduled basis; ii. inland water cruises that include transportation, accommodation, food services and other incidental serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable in view of the provisions in section 17 (5)(b). 6. Contentions of the Jurisdictional Officer: The classification 996415 is local water transport service of passengers. From the application it is not clear whether the passenger's entrance and exit are at different places or at same place. If at same place, it works as a floating restaurant and not as a passenger transport service. 7. Personal Hearing: The applicant was granted opportunity for personal hearing on 06.01.2021. The authorised representative of the applicant attended the personal hearing. He reiterated the contentions made in the application and requested to issue the ruling on the basis of the submissions made by them. 8. Discussion and Conclusion: 8.1. The ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de transportation, accommodation, food and other incidental services in an all-inclusive fare. The services rendered by the applicant as detailed above squarely falls under the Heading 996415 in view of the explanatory note and hence the services are appropriately classifiable under SAC 996415. 8.3. Having come to the conclusion that the services are appropriately classifiable under SAC 996415, the next issue to be decided is the rate of GST applicable on the service. The entry at SI No. 8 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 pertains to the rate of tax applicable for services falling under Heading -9964 - Passenger transport services. The relevant sub-entry (vii) of SI No. 8 of the said notification reads as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redits. Sub-section (5) of Section 17 specifies the list of goods and services in respect of which input tax credit is not available except under the situations specified therein. Vessels, food and beverages are included in the list specified in Section 17 (5) and hence input tax credit of tax paid on vessels and in the repair and maintenance of vessels and in respect of food and beverages are not available except when they are used for the purposes specified therein. In order to determine the eligibility of input tax credit in respect of tax paid on the expenses incurred in refurbishing / furnishing the vessel and in respect of the food supplied in the course of the cruise it is necessary to determine whether they are used for providing su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aged- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; (b) the following supply of goods or services or both,- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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