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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 ..... and Travels, Opposite Rajputana Shereton Hotel, Jaipur, Rajasthan 302006 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97 (2) (a) given as under: - a. Classification of goods and / or services or both * Further, the applicant being a registered person (GSTIN is 08AAJFC6249G1ZA as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: * The applicant is engaged in business of providing Tour Operator' as well as 'Support Services'. In a particular set of transactions, the Applicant receives service orders from the main tour operator to provide a range of services to the passenger/ tourist. There is a contractual understanding between the tourist and the main tour operator to provide a complete packaged tour. In turn the main tour operator engages the Applicant to provide one or more of the following services (hereinafter referred as 'Ancillary Services'): i. Elephant Rid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Heading 9985(i) (i.e. tour operated services provided as a consolidated package) are leviable to GST @ 5%. That the services which are not qualified under the specified category of Supply of Tour Operator services, falls under the heading 9985(iii) i.e. other support services and are leviable to tax @ 18%. * To determine whether the Applicant qualifies under Heading 9986(i) or 9985(ii), it is relevant to examine the meaning of the terms 'tour' and 'tour operator' for the purposes of the Rate Notification, and accordingly verify whether the Applicant falls within the ambit of such terms. The same has been discussed herein. Meaning of term 'Tour' It is humbly submitted that the meaning of term Tour' has not been defined in the Rate Notification, therefore, reference is made to the dictionary meaning of the term Tour'. As per dictionary, the term Tour' is defined as: Shorter Oxford English Dictionary pg. 3309 (5th Ed. Vol 2002) Tour: A journey or period of travel from place to place esp. a holiday comprising visits to a number of places on a route through an area. Hence, Tour' means a travel from one place to another by any mode of transportation. * That reference can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, boat ride, local sightseeing etc. Also, the annexure to the said Rate Notification i.e. List of Services, provides for various activities under the head of Travel arrangement, tour operator and related services. All such activities which are mentioned under this head shall be construed as a part of business of operating tour and can be said to be supplying tour operator services. Hence, it is submitting that the Applicant in present case shall be construed to be supplying tour operator services. * That as per the Rate Notification, the rate of 5% under Heading 9985(i) can be availed in following cases: i. ITC in respect of goods and services used in supplying the service has not been taken except in case where ITC is in respect of input services in same line of business i.e. Tour operator service procured from another tour operator, ii. The bill issued by the supply for this services indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for tour including the charges for accommodation and transportation required for such tour. * That the condition no. (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is providing only ancillary services viz. Elephant Ride at Amber Fort, Guide Charges, Assistance Charges, Home Host Dinner, Lunch/ Dinner at Local Restaurant, Boat Ride at Udaipur, Camel Ride at Jaisalmer Saree/Turban Tying etc. and is not involved in transportation and accommodation of persons/ tourist engaged by tour operator. * To determine whether the Applicant qualifies under Heading 9985(i) or 9985(iii), it is relevant to examine the meaning of the terms 'tour' and 'tour operator' for the purposes of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 (as amended) and accordingly verify whether the Applicant falls within the ambit of such terms. The same has been discussed herein. The meaning of term Tour' has not been defined in the above said Rate Notification, therefore, reference is made to the dictionary meaning of the term Tour'. As per dictionary, the term Tour' is defined as: Shorter Oxford English Dictionary pg. 3309 (5th Ed. Vol 2002) Tour: A journey or period of travel from place to place esp. a holiday comprising visits to a number of places on a route through an area. Hence, Tour' means a travel from one place to another by any mode of trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from another tour operator)] 48 has not been taken [Please refer to Explanation no. (IV)]. 2. The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour [(ii) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. 9 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)].]49 [(iii) Support services other than (i) and (ii) above 9 - While going through the above notification, we find that two conditions are essential to categorize a tour operator which are mentioned below - a. Bill issued for supply of tour operating service should be a consolidated one i.e. inclusive of accommodation and transportation charges. b. Provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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