9911796707
TMI Blog2021 (12) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... Since the consideration received by the applicant is for providing boarding, lodging facilities and such other agreed services, the same may be considered as 'declared tariff as per Notification No. 12/2017- Central Tax (Rate) dated: 28.06.2017. The service of supply of food provided by the applicant is also covered under the above entry of the and hence attracts GST at 5%. - KAR ADRG 75/2021 - - - Dated:- 6-12-2021 - DR. M.P. RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER Represented by : Sri Manoj Kumar, Manager ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Healersark Resources Private Limited, No.174/ 1, Meu Square Building, Bannerghatta Main Road, Bengaluru-560076 having GSTIN 29AAECH2332P1Z9 have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and KGST Act. 2. The Applicant is a Private Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with AMSL for providing boarding, lodging and other services to the trainees at all places in Karnataka. The applicant provides the below services. 5.5.1 The applicant states that they shall explore the hostels and provide boarding and lodging facilities separately for boys and girls to accommodate the candidates / students enrolled for the courses offered at the Training Centres of AMSL in the State of Karnataka as per the requirement of AMSL. 5.5.2 The hostels identified shall be within a maximum distance of not more than 1-2 kilometers. 5.5.3 The applicant states that they shall arrange for the dining space, kitchen space for cooking and shall arrange food as per the menu specified by AMSL for breakfast, lunch and dinner to the candidates / students staying at the hostels. 5.5.4 The applicant shall arrange for the below amenities- i. Partition work, if any, for security of girls. ii. Toilets and bathrooms in Girls Hostels and Boys Hostel in the ratio of 10:1. iii. One urinal for every 20 boys in the hostel. iv. Wash basins for boys girls. v. Furniture / Fixtures viz., Tables, fans, exhaust fans, lights etc. vi. Cots, Mattresses, Pillo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ordinary course of business one of which is a principal supply; On perusal of the above definition, it can be inferred that a composite supply has to fulfil the below criteria- Supply of two or more table supplies of goods or services or both. The two or more taxable supplies are naturally bundled and are supplied in conjunction with each other in the ordinary course of business, and One of the two taxable supplies is a principal supply. 6.4 The above criteria are analysed as below- 6.4.1 Supply of Two or More Taxable Supplies of Goods or Services or Both : The pre-requisite for a composite supply is that the supply should be a mixture of taxable goods or services or both. This means that composite supplies consist of different supplies which in other circumstances might have been their own individual supplied with their own specific tax treatments. Taxable supply has been defined in Section 2(108) of the CGST Act, 2017 as - Taxable supply means a supply of goods or services or both which is leviable to tax under this Act; 6.4.2 Supply Are Naturally Bundled In the Ordinary Course Of Business: In general every transaction shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity of the applicant is to provide accommodation to the candidates at the hostels. They have created the infrastructure to mainly provide the services of accommodation by taking up hostel buildings etc., on rent/lease and then supplying a significant package of services to the occupants. The supply of food and other amenities to candidates is an ancillary but an integral part of the principal supply. The case in hand can be compared to the example of a Hotel providing the facility of breakfast cited in the Education Guide. The same has been considered to be a composite supply with the principal supply being accommodation service. Hence they are of the view that the activity is a composite supply where the principal supply is accommodation service. PERSONAL HEARING / PROCEEDINGS HELD ON 07-10-2021 7. Shri G Manoj Kumar, Manager Duly Authorised Representative of the applicant appeared for personal hearing proceedings held on 07-10-2021 and reiterated the facts narrated in their application. FINDINGS DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant has submitted few sample invoices raised by him towards the services provided by him to AMSL, which shows that he is raising 2 separate invoices, one towards hostel rent and one towards hostel food. Also from the agreement it is seen that the charges are defined separately for accommodation and for food and other facilities. Since the Applicant is raising separate invoices for the services supplied by him to AMSL, there is no provision of 'bundled services to AMSL by the applicant, but two separate supply of services. 14. The Applicant intends to know whether the services provided by him to AMSL amounts to composite supply or not. Composite Supply is defined in subsection 30 of section 2 of CGST Act 2017 as under: composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Since there is no provision of 'bundled services' by the applicant to AMSL, the same is not covered under the definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent. Nil Nil 18. The applicant is also into supply of food along with accommodation but raising different invoices for each. As per Notification No. 13/2018-Central Tax(Rate), dtd.26.07.2018, (i) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent is taxable at 5% GST without input tax credit. The service of supply of food provided by the applicant is also covered under the above entry of the notification mentioned supra and hence attracts GST at 5%. 19. In view of the fore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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