2019 (4) TMI 75 - AAR - GST

Liability of GST - tour packages, which are providing to guests by way of separate services like accommodation, serving food and beverages, service of authorized guides, trekking accessories etc against separate invoices - Serial No.7 of N/N. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended by N/N. 13/2018- Central Tax (Rate) dated 26.07.2018. Held that - It is stated that food and beverages are prepared in each of the destinations, and are served to the guests as per their request and separate invoices are to be issued - The applicant is providing service of authorized guide which attract 18% GST. As per Circular No.47/21/2018-GST dtd.08-06-2018, it has been clarified that the taxability of supply would have to be determined on a case to case basis looking at the facts and circumstances of each case. Where a supply involves supply of both goods and services and the value of such goods and services supplied are shown separately, the goods and services would be liable to tax at the rates as applicable to such goods and services separately. In case where a supply involves supply of both goods and services and the value of such goods and services supplied are shown separately, the goods and services would be Liable to tax at the rates as applicable to such goods and services separately.

Summary

Issues: Tax liability under GST for tour packages providing separate services like accommodation, food and beverages, authorized guides, trekking accessories.

Tax liability under GST for accommodation services:
The judgment analyzed the tax liability under GST for accommodation services provided by the applicant. It was clarified that the threshold limit for exemption is not based on charges per guest but on the declared tariff of the unit of accommodation. Accommodation with a declared tariff below Rs. 1000 per day is exempt, while different tax rates apply based on the tariff range. The ruling highlighted the specific GST rates applicable depending on the declared tariff, ranging from 12% to 28%. The concept of "declared tariff" was explained to include charges for all amenities provided in the unit of accommodation without excluding any discounts offered.

Tax liability under GST for food and beverages services:
Regarding the tax liability for food and beverages services, it was noted that separate invoices are to be issued for these services. The judgment referred to Notification No. 13/2018-Central Tax (Rate) to determine the applicable GST rate. It specified that the supply of food or drinks by a restaurant or eating joint, excluding those in certain residential or lodging places with specific tariff limits, is taxable at 5% GST without input tax credit. This aspect was crucial in determining the tax liability for food and beverages services provided by the applicant.

Tax liability under GST for service of authorized guides:
The ruling also addressed the tax liability for the service of authorized guides, proposing an 18% GST rate for this service. Reference was made to Circular No. 47/21/2018-GST, emphasizing that the taxability of a supply involving both goods and services should be determined based on individual circumstances. It was highlighted that when the value of goods and services supplied is shown separately, they would be liable to tax at the rates applicable to each component individually.

Overall ruling and conclusion:
In conclusion, the judgment reiterated that the tax liability under GST for tour packages providing separate services should be determined based on the individual components of goods and services supplied. It emphasized that when goods and services are shown separately, they should be taxed at the rates applicable to each component. This comprehensive analysis provided clarity on the tax implications for the various services offered by the applicant in their tour packages, ensuring compliance with GST regulations.