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TMI Blog2019 (10) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... ng services involving own or leased non-residential property and is liable for GST at the rate of 18 percent of HSN 997212. Providing of additional facilities like Dining Tables/ Chairs, Partitions, Water purifiers, Bunk beds with lockers, TV with DTH Connection - HELD THAT:- The entire investment made is recovered with 12% interest per annum at the rate of ₹ 1,22,893/- per month. This amounts to supply of goods as per entry no. 1(c) of Schedule II to the Central Goods and Services Tax Act which reads any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of the full consideration as agreed, is a supply of goods . Accordingly it is liable to tax at the rate applicable to each of the goods at the time the delivery of the goods is given to Sodexo Food Solutions India Pvt. Ltd. Providing security services - HELD THAT:- The supply is liable to tax as applicable under SAC 998529 and is liable to tax at 18% under entry 23(ii) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and is payable under Reverse Charge Mechanism by the recipient of service, if he is registered, as per Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onthly rent of 2,35,000/- per month to the extent of 3 years exclusively used the schedule premised for accommodation purpose. c. Further the applicant company has entered in to leave and licensee agreement with Sodexo Food Solutions India Private Limited dated 02-04-2018 for providing the sub lease (sub let) of scheduled premises of the aforesaid address at 106 ft X 58 ft at 1st and 2nd Floor to the extent of 5,25,000/-per month on monthly license fee (rent) and also provided facilities as per requirement of Sodexo Food Solutions India Private Limited Staff and Executives for residential accommodation d. The requirement of Sodexo Food Solutions India Private Limited provided by the applicant is as under.- (i) Washrooms and toilets are common infrastructure required in the every building, (ii) bunkers with lockers, partitions, (iii) water purifier with RO, (iv) Dining tables and chairs, (v) Security service for 24 hours, Maintenance work, (vi) television set with DTH connection, (vii) Water sump, (viii) OHT (2,000 Litres*3), for 31 rooms at 1st and 2nd floor of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.1 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 7.3 The applicant has presented two sets of agreements. (a) The first document is a rent agreement between the applicant and Dr Banraji B.H, on 21-03-2018 wherein the property owner has let out a certain premises for accommodation purpose for monthly rent of ₹ 2,35,000/-. In this agreement the details of the premises are given only in the form of the plot number, the area of the plot and its surrounding plots. The agreement does not give details like the number of rooms, washrooms etc.. Generally an agreement for a residential unit will have details like the number of rooms etc. The agreement has very cautiously avoided mention of all these details. The schedule of the property in the form of possession certificate of the above said premises, KIADB/AE/PC/648/2014-15 dated 27-08-2014 issued by the Karnataka Industrial Development Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -residential property. Considering the number of washrooms and toilets mentioned in the agreement it appears that the building was constructed as a hotel or a lodge. 7.5 The supply of services, in the facts and circumstances of the case, are classifiable as Rental or leasing services involving own or leased non-residential property under Service Code (Tariff) 997212. It is taxable in the hands of the landlord and is liable for GST at the rate of 18 percent. 7.6 Further the applicant company has subleased the premises to M/s. Sodexo Food Solutions India Private Limited based on leave and license agreement dated 02-04-2018 for a rent of ₹ 5,25,000.00 per month. The supply of services is considered as rental or leasing services involving own or leased non-residential property and is liable for GST at the rate of 18 percent of HSN 997212. 7.5 The applicant is also providing additional facilities like Dining Tables/ Chairs, Partitions, Water purifiers, Bunk beds with lockers, TV with DTH Connection and the entire investment made is recovered with 12% interest per annum at the rate of ₹ 1,22,893/- per month. This amounts to supply of goods as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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