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TMI Blog2020 (5) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing activities are liable to taxes or not narrated as under: "1. The Authority has floated tenders for collection of vehicle entry fees, which is an access to temple premises. The highest bidding was at Rs. 56,08,077-00. The Authority wants to know whether KGST/ CGST has to be collected on the said amount. 2. The Authority sells laddoos, kallu sakkare, Thirtha Prasada, Cloth bags, and other articles beginning from Rs. 5/- up to Rs. 100/-. Whether KGST / CGST has to be collected on the same. 3. The Authority has approximately 100 shops which are given on lease through auction. Once in a year the Authority conducts public auction and the highest bidder is permitted to run the shop for a year. Whether KGST / CGST has to be collected on the same. 4. The Authority also conducts e-procurement auction for the service of tonsuring the heads of the devotees. The highest bidder is given the right to collect fees for tonsuring the head. Whether KGST / CGST has to be collected on the tendered amount. 5. The Authority has 16 Cottages/ rooms with 242 rooms which are given on rent and collects "vasathi nidhi kanike". The Kanike ranges between Rs. 130 and Rs. 750. Whether KGST / CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged for different services are as under. d. The Seva services provided by the applicant are as under: e. Further, the applicant had 4 to 5 lodges where it is providing accommodation services to the pilgrims and devotes visiting the temple and for this it is collecting money consideration where the value of such supply of service does not exceed Rs. 1,000-00 per day per unit of accommodation and hence the applicant Authority is not collecting any GST on the same. f. The applicant had two kalyanamatapas out of which one is located at Malai Mahadeshwara Hills and the other at Kollegal where it collects money consideration as rentals at Rs. 10,000-00 or more per day basis. Therefore the Authority is desirous to know the correctness of collection of GST? g. Further the applicant is also rendering other services and is desirous to know the whether the said service which attracts GST or not. The details of such other services are as under. (a) Transfer of the right to collect entry fee on vehicles, (b) Leasing of commercial shops through auctioning, (c) Transfer of the right to tonsure the heads of the devotees through auction/tendering, and (d) Transfer of the right to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust, Shri Malai Mahadeshwara Swamy Temple, MM Hills, Kollegal, are exempt under Section 80G (5) (vi) of the Income Tax Act, 1961, in the hands of the donor (s) subject to the limit prescribed therein. 5. FINDINGS 8s DISCUSSION: 5.1 We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by Sri Y.C. Shivakumar, Advocate of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 5.2 At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017 and KGST Act, 2017) 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 corresponding similar provisions under the KGST Act. 6. The questions posed before the Authority can be classified based on the nature of the activity done by the applicant into the following categories:- a. Sev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) . . . . . 7.2 From the above it can be seen that the seva services are not in the course or furtherance of business and hence the same cannot be covered under the scope of supply, though there is money received by the applicant for the same. Further, even the definition of consideration also states that the money received should be in relation to the supply of goods or services or both and since the same does not fall under supply, the money received is not a consideration in relation to the supply of goods or services or both. Hence the seva services provided by the applicant is not a supply and hence is not a part of the turnover and hence cannot be taxed under the GST Act. Further, as per entry no. 13 of Notification No.12/2017- Central Tax (Rate) services by a person by way of conduct of any religious ceremony is also exempt from tax. Hence in lieu of both, the seva charges and the special darshan charges collected by the applicant is not liable to tax under the GST Act. 8. Regarding the accommodation services provided by the applicant to the pilgrims, which is related to the question 5, it is stated that the value of such service is less than Rs. 1000-00 per day per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes as they do not form part of prasadam. 10. Regarding the question no.1 related to the auctioning for collection of vehicle entry fees, question no.4 related to auctioning of service of tonsuring the heads of devotees, question no.8 related to the auctioning of right to collect service charges and question no.10 related to auctioning of the right to collect charges for vahana pooja, it is seen that in all of them, the applicant is transferring the right to provide certain services for a consideration and is not itself providing the services. These are supply of services falling under SAC 9997 and are covered under the entry no.35 of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 and are liable to CGST at the rate of 9%. 11. Regarding the question no.3 relating to leasing out of commercial shops, the same is examined and the entry no.13 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 reads as under: 13. Heading 9963 or Heading 9972 or Heading 9995 or any other Heading of Section 9 Services by a person by way of - (a) conduct of any religious ceremony; (b) renting of precincts of a religious place meant for general public, owned and managed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not even renting of precincts of a religious place meant for general public to be covered under entry no.13 of Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017. Hence this is not covered under any exemption notification. Further SAC is verified and the same is covered under SAC 9967 and hence covered under entry 11 (H) of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 and liable to CGST at 9%. 14. Regarding the question in No.12, the applicant states that he is desirous to float tenders for similar such activity in future. In this regard, it is observed that the applicant himself is not providing any particular service but desires to transfer the right to provide services against a consideration to be received by the acceptor, for a consideration. The provision of a particular service and transfer of the right to perform a service are different and these transfers of rights to collect consideration for a particular service by the recipient of the contract given by the applicant would be supply of services falling under SAC 9997 and are covered under the entry no.35 of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 and are liable to CGST at ..... 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