9911796707
TMI Blog2022 (6) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... ikar (Rajasthan) -332311 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a),(b), (c) & (e) given as under: - (a) Classification of any Goods or Service or Both (b) Applicability of a Notification issued under the Provisions of this Act: (c) Determination of the time and value of supply of goods or services or both: (e) Determination of the Liability to pay tax on any goods or services or both. Further, the applicant being a registered person (GSTIN is 08AABTM0215E1Z5 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. A. SUBMISSION OF THE APPLICANT:(in brief) * That Mody Education Foundation (MEF), having its registered office at Kanchanjungha (7th Floor), 18- Barakhambha Road, New Delhi- 110001 (herein after referred as applicant) is Society registered under Societies Registration Act. 1860 with Registration No. S-10560/1986 (date of Registration - 27-02-1986). * That Mody Education Foundation is registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Following FOUR categories of Hostel Seats are being offered by MEF for the students of MUST:- i) Hostel Seat in a Single Occupancy A.C. Room; ii) Hostel Seat in a Single Occupancy Non A.C. Room iii) Hostel Seat in a Double Occupancy A. C. Room; iv) Hostel Seat in a Double Occupancy Non A. C. Room; * That the amount to be charged by MEF from the students of MUST for Hostel Accommodation Charges shall be based on per 'Hostel Seat', which shall be less than Rs. 1000/- per day. The Hostel Accommodation Charges shall be collected for the entire year either as one-time payment or in Installments. * Earlier Application for Advance Ruling & its Result:- i) That MEF has earlier applied before the Rajasthan Authority for Advance Ruling (AAR) vide ARN No. AD0810200100823 dated 30/10/2020 to seek an Advance Ruling in respect of the following matter:- "Whether Hostel facility which includes Lodging and Boarding service provided by MEF to the students of MUST having value of service upto Rs 1000/- per day would be eligible for exemption under entry no. 14 of the notification 12/2017 CTR Dt 28-06-2017?" ii) That the AAR has passed its order vide Advance Ruling No. RAJ/AAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of notification No. 12/2017-C.T. (Rate). However, 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 are exempt. Thus, accommodation service in hostels including by Trusts having declared tariff below one thousand rupees per day is exempt. [SI. No. 14 of notification No. 12/2017-C.T. (Rate) refers] Thus, an analysis of the above clarification by the CBIC, makes the Hostel Accommodation Service at par with the "Service by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purpose" which falls under Service Accounting Code (SAC) - 9963. 2. Applicability of Notification No. 12/2017-CT (Rate) and Tax Liability on Hostel Accommodation Service The clarification given by CB1C at S. No. 1 of Circular No. 32/06/2018-GST dated 12-2-2018 (Refer - Table I) is self-explanatory and by mere 'Literal Construction' of the language used by CBIC in its clarification, it is clear beyond doubts, that SI. No. 14 of Notification No. 12/2017 - C.T. (Rate) is applicable on the Hostel Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fix the tariff in the business of accommodation service. Authority for Advance Ruling has considered room as the unit of accommodation. In this regard we have contrary view as legislature has used the term 'per unit of accommodation' instead of other criteria. The word 'per unit of accommodation' should be understood as per general practice adopted by large number of service provider in similar business model. In hotels, generally it fixes per room, per suit whereas in hostels, -inns and dharmshalas, it fixes per room, per bed, per seat and per person. From the facts mentioned by the appellant, it would emerge that they provides accommodation service in hostel and fix the tariff on the basis of hostel seat, therefore, we agreed the contention of appellant and finds that hostel seat should be considered as a unit of accommodation. Thus, by the aforesaid order of AAAR, it is settled that in case of Applicant i.e. MEF, the Unit of Accommodation shall be a 'Hostel Seat' and not a Room or Dormitory as a whole. 5. Hostel Accommodation Service is provided Independently and not Bundled with any other Service: - The Applicant (MEF) is exclusively providing the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sand rupees per day is exempt.. [SI. No. notification No. 12/2017-C.T. (Rate)". * Further, Rajasthan Appellate Authority for Advance Ruling, CGST, vide its order No. RAJ/AAAR/01/2021-22 dated 27.10.2021 in respect of appeal filed by M/s Mody Education Foundation, Laxmangarh, Sikar has held that the term "Unit accommodation" is "Hostel Seat". * In view of above, it appears that hostel accommodation charges per hostel seat provided by M/s Mody Education Foundation (MEF) to the student of M/s Mody University of Science and Technology (MUST) having value of service upto Rs. 1000/- per day would be eligible for exemption under Entry No. 14 of the Notification No. 12/2017-CT (R) dated 28.06.2017, with condition that this value should be in lieu accommodation facility only and should not be for mixed supply including food & beverage etc. E. FINDINGS, ANALYSIS & CONCLUSION: 1. We have perused the records on file and gone through the facts of the case and the submissions made by the applicant as well as the department. On the basis of submission made, we are of the view that the applicant i.e Mody Education Foundation (MEF) having GSTIN 08AAHCG0218N1Z1 is running a CBSE affiliated Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Para 8.8 on Page 11 of the Order); 5. Based on the comments offered by the jurisdictional officer in the present case, we observe that hostel accommodation charges per hostel seat provided by M/s Mody Education Foundation (MEF) to the student of M/s Mody University of Science and Technology (MUST) having value of service upto Rs. 1000/- per day would be eligible for exemption under Entry No. 14 of the Notification No. 12/2017-CT (R) dated 28.06.2017, with condition that this value should be in lieu accommodation facility only and should not be for mixed supply including food & beverage etc. 6. As per ruling passed by the Hon'ble Rajasthan Appellate Authority for Advance Ruling (RAAAR) vide Order No. RAJ/AAAR/01/2021-22 dated 27-10-2021, the appellate authority considered 'Hostel Seat' as a 'unit' in respect of Sr. No. 14 of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. 7. Now, the applicant again filed this application seeking there-under exemption for their services under Sr. No. 14 of Notification No. 12/2017-Central Tax (Rate) as amended on the basis of fact that now they are providing the 'accommodation facility' only and not pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplies of goods or services, or any combination thereof made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. Illustration.- A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; In view of above, we find that essential components of a composite supply are as under- - two or more individual supplies; - supply of goods or services, or any combination thereof: - made in conjunction with each other, - such supply does not constitute a composite supply; Further, tax liability on a mixed supply shall be determined as defined in Section 8 (b) of GST Act, '017 which is as below- "a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax." In the present case, we observe that the applicant will provide single service of 'hostel accommodat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accommodation below one thousand rupees per day or equivalent are exempt. Thus, accommodation service in hostels including by Trusts having declared tariff below one thousand rupees per day is exempt. [SI. No. 14 of notification No. 12/2017-C.T. (Rate) refers] 13. On gone through of above exemption Entry No. 14 of the Notification No. 12/2017-CT (R) Dated 28.06.2017 as well as above discussed CBIC's Circular No. 32/06/2018-GST dated 12°February, 2018, we find that the description of service is user based, meaning that, if the accommodation is used for residential or lodging purpose then it is immaterial who the user is. The said entry mentions "Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes". The word 'hostel' not being specifically mentioned implies that the same would be covered under the term 'Whatever name called'. The services provided by such hostel, for residential or lodging purposes would be covered by the scope of notification entry where the declared tariff of a unit of an accommodation is below one thousand rupees per day. Therefore, the scope of the entry is restricted to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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