Clarifications approved by the Fitment Committee in its Meeting on 25th July 2017, 31st July 2017 and 1st August 2017 with regard to services. - GST - States - Memo No. 1909/ST-2.

From Excise Taxation Commissioner, Haryana, Panchkula. To 1. All Joint Excise Taxation Commissioner (Range), 2. All Joint Excise Taxation Commissioner (Appeal), 3. All Dy. Excise Taxation Commissioner (Sales Tax), in the State of Haryana. Memo No. 1909/ST-2, Panchkula, dated the 31.08.2017 Sub: Clarifications approved by the Fitment Committee in its Meeting on 25 th July 2017, 31 st July 2017 and 1 st August 2017 with regard to services - Reg. On the captioned subject the undersigned is directed to state that Fitment Committee had approved the following clarifications with regard to GST on services in the meetings on 25 th July 2017, 31 st July 2017 and 1 st August 2017: - S.No. Questions/Clarifications sought Clarifications 1. 1. Will GST be charged on actual tariff or declared tariff for accommodation services? 2. What will be GST rate if cost goes up (more than declared tariff) owing to additional bed. 3. Where will the declared tariff be published? 4. Same room may have different tariff at different times depending on season or flow of tourists as per dynamic pricing. Which rate to be used then? 5. If tariff changes between booking and actual usage, which rate will be used? 6. GST at what rate would be levied if an upgrade is provided to the customer at a lower rate? 1. Declared Or published tariff is relevant only for determination of the tax rate slab. GST will be payable on the actual amount charged (transaction value). 2. GST rate would be determined according to declared tariff for the room, and GST at the rate so determined would be levied on the entire amount charged from the customer. For example, if the declared tariff is ₹ 7000 per unit per day but the amount charged from the customer on account of extra bed is ₹ 8000, GST shall be charged at 18% on ₹ 8000. 3. Tariff declared anywhere, say on the websites through which business is being procured or printed on tariff card or displayed at the reception will be the declared tariff. In case different tariff is declared at different places, highest of such declared tariffs shall be the declared tariff for the purpose of levy of GST. 4. In case different tariff is declared for different seasons or periods of the year, the tariff declared for the season in which the service of accommodation is provided shall apply. 5. Declared tariff at the time of supply of this service would apply. 6. If declared tariff of the accommodation provided by way of upgrade is ₹ 10000, but amount charged is ₹ 7000, then GST would be levied @ 28% on ₹ 7000/-. 2. Vide Notification No. 46/2017-HGST (Rate) dated the 30th June 2017 entry 34, GST on the service Of admission into casino under Heading 9996 (Recreational, cultural and sporting services) has been levied @ 28%. Since the Value of supply rule has not specified the method of determining taxable amount in casino, Casino Operators have been informed to collect 28% GST on gross amount collected as admission charge or entry fee. The method of levy adopted needs to be clarified. Relevant part of entry 34 of the said HGST- 34(iii) notification reads as under: Heading 9996 (Recreational, cultural and sporting services) - (iii) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as Indian Premier League and the like. 14% (iv)... (v) Gambling. - 14 % As is evident from the notification, entry to casinos and gambling are two different services, and GST is leviable at 28% on both these services (14% CGST and 14% SGST) on the value determined as per section 15 of the HGST Act. Thus, GST @ 28% would apply on entry to casinos as well as on betting/gambling services being provided by casinos on the transaction on value of betting, i.e. the total bet value, in addition to GST levy on any other ices being provided by the casinos (such as services by way of supply of food/ drinks etc. at the casinos). Betting, in pre-GST regime, was subjected to Betting Tax on full bet value. 3. The provision in rate schedule notification No. 46/2017-HGST Act (Rate) dated the 30th June 2017 does not clearly state the tax base to levy GST on horse racing. This may be clarified. GST @ 28% would be applicable on the entire bet value, which is the consideration paid for betting services in racecourse. 4. 1. For entry 34(ii) and 7(ii)(vi)(viii), notification 46/2017-HGST(Rate) whether price/declared tariff includes the tax component or not? 2. Whether amount received on Arjita Seva Tickets for performing special pooja, hundi collections are exempted? If liable to tax, what is the relevant entry of notification 46/2017-HGST(Rate) 3. Whether rent on rooms provided to in-patients is exempted? If liable to tax, please mention the entry of HGST Notification 46/2017-HGST. 4. For automobile servicing, where supply of spare parts and labour work is involved, rate will he based on value of goods or services or intention? 5. What will be the rate of tax for bakery items supplied where eating place is attached - manufacturer for the purpose of composition levy? 6. TDS/ TCS is to be made for payments of VAT liabilities made post GST by Govt. dept. from works contractors? There is insistence of VAT @1.25% by Sub-Registrars of State Registration and Stamps Dept. from Builders at the time of registration of apartments etc. for works completed before 1.7.17 1. Price/declared tariff does not include taxes. 2. All religious ceremonies conducted by the temple are exempt. Services such as arjita service, where special pooja and serving of food is also involved constitutes a composite supply, the rate applicable to the principal supply shall apply. 3. Room rent in hospitals is exempt. 4. In case of composite supply, rate applicable to the principal supply shall apply. 5. Any service by way of serving of food or drinks including by a bakery qualifies under section 10 (1) (b) of HGST Act and hence GST rate of composition levy for the same would be 5%. 6. It is not a GST issue but an issue related to deduction of composition tax in VAT regime, which was entrusted by some States to the registrars. Sub-registrar is not supposed to deduct any tax at source because he is not making any payment to the builder. Where the works contract got supplied prior to 1-7-2017, and invoice was also issued prior to 1-7-2017, section 142 (13) of HGST Act shall apply and therefore no TDS under GST shall apply. Transitional provisions will apply with respect to time of supply. . It was decided to issue the clarifications for the above mentioned questions/issues by way of FAQs. Superintendent (Sales Tax) for Excise Taxation Commissioner, Haryana. Endst No. 1910/ST-2, Panchkula, dated the 31.08.2017