2020 (4) TMI 596 - AAR - GST

Classification of service - rate of GST - Amusement services in Amusement Park - giving access right to visitor for individual joy rides in their amusement park - HELD THAT - The applicant is supplying services by way of access to amusement facilities including merry-go rounds and other rides in their amusement park to visitors - the rate of CGST on the supply of amusement services in amusement park like merry-go rounds and other rides being made to visitors shall be 9% according to Notification No. 11/2017- Central Tax (Rate), dated 28th June, 2017, as amended (vide Notification No. 01/2018Central Tax (Rate), dated 25th January, 2018) - The HSC code (Tariff Group/ Heading) for the supply of amusement services in Amusement Park like merry-go rounds and other rides shall be 99969/999691 - The rate of tax applicable to the services will be 18% GST.

Summary

Issues Involved:
Rate of tax applicable for access right to individual joy rides in an amusement park.

Issue Analysis:

Facts and Contention:
The applicant, M/s. Superstar Amusement Pvt. Ltd., sought an advance ruling on the applicable tax rate for providing access to individual joy rides in their amusement park. They operate under two schemes: one offering unlimited rides for a fee at the entry point and the other requiring additional payment for specific big rides. The applicant claimed that the GST Department indicated a tax rate of 18% for all joy rides, based on a circular from 25.01.2018. However, the Ahmedabad Municipal Corporation instructed them to apply two GST rates: 18% for entry fees and 28% for individual ride access fees.

Discussion and Findings:
The Authority for Advance Ruling reviewed the case details, documents, and submissions. They determined that the applicant provides access to amusement facilities, including merry-go rounds and other rides, in their amusement park. The relevant HSC code for such services is 99969/999691, covering amusement park and similar attraction services. Initially, the GST rate for admission to amusement parks was 28%, but it was later reduced to 18% through Notification No. 01/2018-Central Tax (Rate) dated 25th January, 2018. Consequently, the applicable CGST and GGST rate for the amusement services provided by the applicant is 9%, resulting in a combined GST rate of 18%.

Conclusion:
The ruling states that the HSC code for amusement services in the amusement park is 99969/999691, with the tax rate set at 18% GST for providing access to individual joy rides. This decision aligns with the revised GST rates for amusement services, as per the relevant notifications issued by the GST Council.