No GST payable on the accommodation service provided to Apollo Med Skills: AAR


The Karnataka Authority of Advance Ruling (AAR) ruled that no GST should be paid on the accommodation service provided to Apollo Med Skills.

The applicant, Healersark Resources Private Limited, is engaged in the hospitality industry and provides boarding, lodging and other services to M / s. Apollo Med Skills Limited (AMSL).

The applicant requested the advance ruling on the issue of the rate of GST and the rate of GST applicable to the provision of the services described in this application. Is it a composite offer or a mixed offer? If the service is exempt, see Notification n ° 12/2017-CT (Tariff) of June 28, 2017.

The coram of Dr Ravi Prasad and T. Kiran Reddy argued that the applicable GST SAC for the supply of the service described in this application is 9963. It is neither a composite supply nor a supply. mixed, but from two separate supplies. The accommodation service (SAC 99632) provided by the applicant to the AMSL is exempt from notification n ° 12/2017-CT (Tariff) of 28-06 2017 because the declared price of an accommodation unit is lower to a thousand rupees. But the service provided by the applicant via the provision of food (SAC 99633) attracts GST at the rate of 5% according to Sl.No. 7 (ii) of Notification n ° 11/2017-Central Tax (Rate) of 06.28.2017 as amended by Notification n ° 13/2018-Central Tax (Rate), of 07.26.2018.

“The applicant also takes care of the provision of food and accommodation, but charges different bills for each. In accordance with the notification n ° 13/2018-Central Tax (Tate), dtd.26.07.2018, “(i) Supply, under or within the framework of any service, of goods, namely food or any other article intended for human consumption or any beverage, provided by a restaurant, joint-dining including the mess, the canteen, whether for consumption on or outside the premises where this food or any other article for human consumption or is provided, other than those located on the premises of hotels, inns, guest houses, clubs, campsites or other commercial places intended for residential or accommodation purposes which have declared the rate of any accommodation unit of seven thousand five hundred rupees and more per unit per day or equivalent ”is taxable at 5% GST without input tax credit. The service of providing food provided by the applicant is also covered by the above entry of the notification mentioned above and is therefore subject to 5% GST, ”said the AAR.

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