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TMI Blog2020 (4) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... han ₹ 1000-00 per day. Further, even when given on daily basis, it is seen that the maximum amount charged is ₹ 500-00 per day which is below ₹ 1000-00 per day. Hence the tariff amount per unit of accommodation is less than ₹ 1000-00 per day. Hence the service provided is where the tariff is below ₹ 1,000-00 per day or equivalent - Further, the entry no.14 of Notification No.12/2017-Central Tax (Rate) is analysed and it says all services of SAC 9963 provided by such a supplier having a declared tariff of less than ₹ 1000-00 per day or equivalent would be exempt. Further since in this supply, all the supplies are made as a package with the accommodation service being the principal service, the entire supply would be treated as a composite supply of accommodation service as per section 8 of the CGST Act, 2017. Hence, the proposed supply of services in question by the applicant would not be liable to tax as per entry no.14 of the Notification No.12/2017 -Central Tax (Rate) dated 28.06.2017 as amended from time to time. Provision of other services in addition to the facilities that are in addition to the compulsory services provided and charge the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods and Services Act, 2017. The applicant states that engaged in the business of developing, running, maintaining, operating, setting up, owning, dealing in, buying, selling, renting, subletting, and managing paying guest accommodations, service apartments, flats aimed to suit all type of customers by whatever name called. 3. The applicant has sought advance ruling in respect of the following questions: 1. Whether the daily accommodation services ranging from ₹ 300 to ₹ 500 per bed are eligible for exemption under Notification No.12/ 2017-Central Tax? 2. Whether the monthly accommodation services ranging from ₹ 6,900 to ₹ 12,500 per bed is eligible for the exemption under Notification No.12/ 2017- Central Tax? 3. Whether the said notification would be applicable if LLP decides to charge additional charges for the extra facilities opted by the inhabitants in addition to the facilities that are currently included in the tariff received by the inhabitants but the overall price would be less than the present exemption limit of ₹ 1000 per day per Unit? 4. The applicant furnishes some facts relevant to the stated activity. a. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the daily tariff per unit. However, it is exempted vide Exemption Notification No.12/2017 - Central Tax (Rate) vide entry 14 where services by a hotel, inn, guest-house, club or camp-site by whatever name called, for residential or lodging purposes, having a declared tariff of a unit of accommodation below one thousand rupees per day or equivalent. SAC Code 996311. The applicant states that he needs clarification on the applicability of this entry for his nature of business. PERSONAL HEARING: / PROCEEDINGS HELD ON 20.02.2020 6. Sri Ramanath Rai, Chartered Accountant and duly authorised representative of the above concern appeared for personal hearing proceedings on 20.02.2020 before this authority and reiterated the facts. FINDINGS DISCUSSION 7. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by Sri. Ramanath Rai, Chartered Accountant and duly authorised representative of the above concern appeared for the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 7.1 At the outset, we would like to stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under this entry. (c) This entry covers supply of hotel accommodation having value of supply of a unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent. 9 - (only relevant portions extracted) The term hotel accommodation is defined in clause (xxxiv) of paragraph 2 of the Notification as (xxxiv) Hotel accommodation means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation (b) Entry No. 14 of the Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017 which reads as under: Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent . 7.5 On comparison of the entries it is clear that from the above that the supply of services by a hotel, inns, guest houses, clubs or campsite or any other commercial place, by whatever name called, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 per day per unit of accommodation. The entry no.14 of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 is verified and the description states that Services by a hotel, inn, guest house, dub, or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent and these services should belong to Group 9963. The Group 9963 of the Service Accounting Codes as annexed to Notification No.11/2027-Central Tax (Rate) relates those services which are coming under Food, Edible preparations, alcoholic and non-alcoholic beverages serving services, and if the additional services provided by the applicant belong to the Group 9963, then the turnover of these services will also be exempt as they are covered under the entry 14 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. But those services which are supplied independently to the clients which do not belong to the Group 9963 are liable to tax at appropriate rates, provided that the applicant is liable for registration. 8. In view of the foregoing, we rule as follows RULING 1. The daily accom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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