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TMI Blog2021 (1) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... ve hundred rupees per room per day). This hotel is located adjacent to Sector 32, Urban Estate, Karnal. c. Hazuri Bagh: This is a separate and new unit started by the applicant, in which facilities of party lawns with & without catering and restaurant services are provided. There is no room accommodation in this premises. This premise is located on the Village Road, near Sector 32, Karnal. 1.2 All the three units have separate management, i.e. all operations, sales, accounting are being done separately by each separate team. They have common ownership of the applicant M/s Jewel Classic Hotels Private Ltd. and have single GST Registration Number. 1.3 As mentioned above, applicant has two separate existing Hotel units (Hotel Jewels and Hotel Noor Mahal) and recently started a new unit namely Hazuri Bagh, a party lawn, to organise marriage functions, exhibitions or other events. Hazauri Bagh, will take outdoor catering services from Hotel Jewels (A separate unit, in which No 'hotel accommodation' is more than Rupees Seven thousand Five Hundred per unit per day). 1.4 The applicant conducts various parties, marriages and other events in all three units. In these marriages/events in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 2018. 1.5.5 Government of India again suspended the applicability of provisions of Section 9 (4) of the CGST Act till 30.06.2018 vide Notification No. 10/2018 - CT (Rate) dated 23.03.2018 and the same was again suspended till 30.09.2018 vide Notification No. 12/2018 - CT (Rate) dated 29.06.2018. 1.5.6 Again the said provisions were suspended till 30.09.2019 vide Notification No. 22/2018 - Central Tax (Rate) New Delhi dated 06.08.2018. 1.5.7 As a result of all these notifications put together, we could sum up that a registered person was exempted from payment of GST on the purchase of goods or services or both from an unregistered person upto 30.09.2019. Applicability w.e.f. 01.02.2019 1.6 The Government of India vide Notification No. 1/2019 rescinded Notification No. 8/2017 - Central Tax (Rate) dated 28.06.2017. This notification came into force with effect from 1st day of February, 2019. 1.6.1 CBIC vide Notification No. 2/2019 - Central Tax dated 29th January, 2019 has notified 1st day of February, 2019, as the date on which provisions of the Central Goods and Services Tax (Amendment) Act, 2018 (31 of 2018) shall be applicable. 1.6.2 In section 9 of the principal Act, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A party lawn & restaurant of M/s Jewel Classic Hotels Pvt. Ltd.)? 2.3 Whether the additional arrangements (in addition to foods, beverages & renting of premises) such as flower decoration, DJ, Dance Floor, Special cutlery, Electric/electronics items, arranging food/beverages of specific vendors, provided as 'pure agent' will be excluded from value of supply as given in Rule 33 of CGST Rules and thus no tax is required to be charge on them? 2.3.1 Further, to arrange these supplies, some supplies are procured from Unregistered Persons having no GST Registration. Whether there is any tax on the supplies arranged from these unregistered people to be paid by the applicant under the Reverse Charge mechanism or any other provisions of the HGST Act/CGST Act? 2.4 Whether the extra bed forms part of the room tariff and liable to be charged as per various rates prescribed as per slabs given under Notification No. 11/2017-Central Tax (Rate), No. 13/2018-Central Tax (Rate) Dated 26th July 2018 and 20/2019 -Central Tax (Rate) Dated 30th September 2019 ? 3. Discussion and findings: 3.1 In order to determine the applicability of the notification No. 20/2019 Central Tax (Rate), dated 30th Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering" together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) provided by suppliers providing "hotel accommodation" at "specified premises", or suppliers located in specified premises". 9 Relevant portion of the Explanation is reproduced below: - (xxxiii) "Outdoor catering" means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature. (xxxiv) "Hotel accommodation" means supply, by way of accommodation in hotels, inns, guest houses, clubs, camp sites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation. (xxxv) "Declared tariff" means charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified to charge 5% tax under the said notification. 3.7 The following conditions have to be followed for the entitlement of 5% GST on supply of outdoor catering as per point (iv) of the Notification No. 20/2019 supra- (i) The supply of outdoor catering should be at such premises which should not be specified premises; (ii) The supply of outdoor catering should not be provided by such suppliers who are providing 'hotel accommodation' at 'specified premises'; (iii) The supply of outdoor catering should not be provided by such suppliers who are located in specified premises; (iv) The credit of input tax charged on goods and services used in supplying the service has not been taken. 3.8 Now let us discuss whether the supplier satisfying all the above mentioned conditions or not. In this regard, the proper officer has submitted that Hazuri Bagh is situated under the business premises of Noor Mahal Hotel, second unit of the above said taxpayer which is a specified premises. As Hazuri Bagh is situated in precincts of Hotel Noor Mahal, so it the clear that the taxpayer is not satisfying the condition (i) mentioned above. Therefore, the taxpayer is not entitled to supply @ 5% f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (i) the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorisation by such recipient; The applicant is supplying services/goods as per the requirement of the client; it acts as merely the agent of the customer for making payment of those goods/services on behalf of the customer. (ii) the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and The services/goods arranged by the applicant have been mentioned separately in the invoice raised to the customer, the sample Performa Invoice has been attached with the annexure. (iii) the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account. The supplies procured by the applicant are being exclusively enjoyed by the customers at applicant premises. The applicants only arrange those services on behalf of the customer. In addition to these services, the applicant always supplies its own services either renting of its premises or supply of food or bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both." 3.14 By perusal of the said amended section, we can understand that provisions of Section 9 (4) of the CGST Act are not applicable to all registered persons, goods and services. It is applicable only to selected categories of registered persons & goods and services which have to be notified by the government. Till date the following notifications have been issued under new Section 9(4):- (i) Notification No. 07/2019-Central Tax (Rate) dated 29.03.2019; and (ii) Notification No. 24/2019-Central Tax (Rate) dated 30.09.2019; By perusal of the above notifications it is clear that presently reverse charge mechanism under section 9(4) is not applicable on the applicant. Question No. 4 3.16 Now, to determine whether the extra bed forms part of the room tariff and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notification No. 13/2018 - Central Tax (Rate) dated 26th July 2018 amending Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017. The relevant portion of the same is given below:- In the said notification, in the Table,- (i) against serial number 7, in column 3- (a)... (A) for the words "declared tariff" wherever they occur, the words "value of supply" shall be substituted; (B) the Explanation shall be omitted. 3.19 Further, the rate and manner of tax is further changed by Notification No. 20/2019-Central Tax (Rate) dated 30th September 2019 amending Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017. The relevant portion of the same is given below:- In the said notification, - (i) in the Table, - (a) against serial number 7, for the entries relating thereto in column (3), (4) and (5), the following items and entries shall be substituted, namely, - (3) (4) (5) "(i) Supply of 'hotel accommodation' having value of supply of a unit of accommodation above one thousand rupees but less than or equal to seven thousand five hundred rupees per unit per day or equivalent. 6 - (vi) Accommodation, food and beverage services other than (i) to (v) 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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