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TMI Blog2020 (1) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the applicant cannot be treated as Tour Operator Services in terms of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. The services provided by the supplier are not in the nature of services provided by Tour Operator, the said supply of services cannot be classified under SAC 9985(i) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. The services provided by the applicant are not Tour Operator Service but Support Services classifiable under Serial No. 23 [(SAC 9985(iii)] of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 and attracts GST @ 18%. - RAJ/AAR/2019-20/25 - - - Dated:- 26-11-2019 - J.P. MEENA AND HEMANT JAIN MEMBER Present for the applicant: Shri Rahul Lakhwani (Authorised Representatives) Note : Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices is classified under Heading 9985 as Support Services vide Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time (hereinafter referred as Rate Notification ). The Rate Notification notifies the applicable rate of GST for supply of Support Services and conditions attached thereto. As per the said Rate Notification, the rate of tax for supply of tour operator services has been specified at the rate of 2.5% under Heading 9985(i). The rate specified for other support services under Heading 9985(iii) is 9%. Similar rates have been prescribed under Rajasthan Goods and Services Tax Act, 2017 (Hereinafter referred as RGST Act). On a combined reading of notifications issued under CGST Act and RGST Act, the effective rate of tax comes to 5% on supply of tour operator service and 18% on other support services. In the Rate Notification, the phrase Tour Operator has been defined to mean: - a. Any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport b. any person engaged in the business of op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n present case also, the Applicant takes the tourists in groups for local sightseeing, elephant or camel joy rides, lunch and dinner at local restaurant, boat ride, etc. The whole day of the tourist is spent/ utilized in the said activities and all the important tourist destination of the city are covered by the Applicant. The services provided by the Applicant are covered under sightseeing and other similar services. Thus, the Applicant provides the service of organizing and conducting a Tour for the tourists. That in the Rate Notification, the term Tour Operator has been defined as the person who is engaged in the business of planning, scheduling, organising, arranging tours by any mode of transport. Thus, as per the said definition the Tour Operator must provide the transportation service. It is humbly submitted that the Applicant is organizing the whole day trip in the present case and the said trip for the whole day consists of various activities which together constitutes as a Tour of the city. Further, during local sightseeing the Tourists are taken from one place to another by mode of any transportation. The said transportation facility may be provided by the main tou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. That as per the Rate Notification, if the services provided by the supplier are not in the nature of services provided by Tour Operator , the said services will classify under Other support services having rate of 18%. Thus, if the services of the Applicant are not qualified as services provided by the Tour Operator then the same will qualify as support services. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT a. Whether the Ancillary Services provided to various tour operators falls under Chapter heading 9985 (i) {Supply of Tour Operator Service) or 9985 (iii) {Support Services}? b. What is the applicable tax rate for ancillary services provided to various tour operators? 3. PERSONL HEARING In the matter personal hearing was granted to the applicant on 14.11.2019 at Room no. 2.29 NCRB, Statue Circle, Jaipur. Shri Rahul Lakhwani (Authorised Representative) of applicant appeared for PH. During the PH, he reiterated the submissions already made in the application. He further requested that the case may be decided at the earliest. 4. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdictional officer (STO, State Tax, Ward-II, Circle- B, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay include arrangements for accommodation, sightseeing or other similar services) by any arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours. In view of the definition of tour and tour operator, we find that supply of transport service in a tour package is very essential to classified as tour operator under GST Act. While examining the submissions of the applicant, we observe that the applicant is engaged in business of providing services like sightseeing and other similar services but not providing service of transportation and accommodation, thus it is providing/ supplying only a part of tour related services. To determine the classification and GST rate of the services supplied by the applicant, the relevant portion of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 (as amended) is as below Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 Sl.No. Chapter, Section or Heading Description of Service Rate (per cent) Condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom another tour operator)] has not been taken. In view of above conditions, we observe that a gross amount should be charged by the Tour Operator for the entire Tour. In present case, the services provided by the Applicant has various activities like Elephant/ Camel ride, Boat ride, Guide services, local sightseeing, dinner/ lunch at local restaurant etc. For each such service no separate invoice is issued to the tourist and one consolidated bill is raised by the Applicant to the tour operator. The Applicant does not charge for the accommodation and transportation services as the same is not provided by the Applicant. Thus, the applicant does not satisfy the conditions for tour operator and services provided by the applicant cannot be treated as Tour Operator Services in terms of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. The services provided by the supplier are not in the nature of services provided by Tour Operator, the said supply of services cannot be classified under SAC 9985(i) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. In view of the above discussions and provisions of law, the services provided by the applicant ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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