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    Rajesh Talati

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    5115725, 606 Pa (GST payable on Hostel Services by Mody Education Foundation: AAR ‘Goods and Senices Tax tps haxguuinclagoryigoods-and-servacia) » sudioary(ntestaxpuruintypoludian-2) | Hostel Services by Mody Education Foundation: AAR (https:axguru.in/goods-and-service-taxigst ‘ducation-foundation-aar.htm)) stpsitaxguruinfathorledtor2h | ices Tax (htps:Ttaxguruinvcategorylgoods-and-service aw) - Judiciary (htps:Ttaxqurainypajudciary-2!) Do invwp-adminipost php?post=8101348action-edt) 07 Jul 2021 (tips:!taxguru.in/20211071071) © 2,142 Views _psttaxgur ivgoods-and-sorvice-axlgs-payable-hostel- services mady-educationfoundation-aarhimlfpcamr sails + Mody Education Foundation (GST AAR Rajasthan) ‘vance Rung No. RAIAAR, 2021-7212 Onder: 77072021 than hips taxguu oursaarjashan) Advance Rulings ps axgur inicoutstauhoriy-otadvance-rlngs!) lgmenorder (htps:sRaxgurs ie nkchtpssRaxguruilwp-contentuploads2022I03n-e-Mody-Educaton Foundat! dein re Mody Education Foundation (G87 AAR Rasthan) In re Mody Education Foundation (GST AAR Rajasthan) In the instant case, we find thatthe exemption to accommodation service 's applicable in respect ofa unit of accommodation where tars below Rs. 1000! per day. Notification No. 11/2017-CT(Rate) (hips Raxgur.nigoods-and-servicetaxioty-rates-supphy-services-cgst-acchim\) as Furth, the applicant boing a registered person (GSTIN Is OBAABTMO215E1Z5 as per the deckration given by him in Form ARA-O1) the issue raised by the applicants nether pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling 1, SUBMISSION AND INTERPRETATION OF THE APPLICANT: 1. Mody Education Foundation, having is registred office at Kanchanjungha (7th Floor, 18- Barakhambha Road, New Delhi 110001 (hersin ater referred as MEF) is Society registered under Sociaties Registration Ac, 1860 with Registration No. S-TOSGO/T986 (date of Registration — 27- 02.1986), 2. The Mody Education Foundation was established wih folowing objective |-to provide for instruction and taining in such branches of learning as it may deem ft. lito provide for research and forthe advancement of and dissemination of knowledge, ii, to undertake extra moral studies, extension programmers and feld uveach activities to contribute to the development of society, Iv to enter ino ary agreement or arrangement for orto lake over, tun and maintain one of mere schools, college, insiullons or centers at any place in India, and to impart and promote education in Ats, Science and Commerce atc. lo organize, run, manage, schools, colleges, and institions Vi. establish and manage boarding house, museums, laboratories exhitions, libraries, lecture-halis, practical classes and other educations facies. Vito grant stipends, scholarship, studentships and other allowances, concessions and grates to deserving student and candidates Vito hold examinations and grant certificates of proficiency ar other academic dstincions or tives to persons who have compliee with the Conditions lad down inthe regulations of the society. hitps:/taxgurainlgoads-and-servicetaxigst-payable-hostelservices-mody.education-foundalion-aarhiml 204 5115725, 606 Pat ‘GST payable on Hostel Services by Mody Education Foundation: AAR Ix, to acquire by concession, gran, purchase, barter, lease, lense, bequest, gi or otherwise elther absolutely or conditionally and either alone or jinty with others the agreultural lands, arywhere In India and to eamout all agricultural actives, including Prantation, Aorestation, Agro forestry, Horiculue, raising of cops, growing medicinal and aromatics plans, grass, garden products, dairy farming, brooding of vestock, grazing and all lied activites etc. incidental to agrcuture X10 estadlsh, creat and develop sanctuaries forthe protection and dovolopmant of wld te Xi. to work and ereate awareness for protection and development of ecology, environment, soil and water conservation and cary an al activites relating to ths Xi to do al such other acts and things as may be necessary or desirable to further the abjacs ofthe socal. 3. MEF is running a CBSE aflated School from class 3rd to 12th at NH-11, Laxmangarh, Dist, Skar-282911. MEF is registered under GST law having GSTIN 08AABTMO215E1Z5. MEF is also the Sponsoring body of Mody University of Science & Technology 4, Mody University of Science & Technology (herein after referred as MUST) is a University established ule 2() of the UGC Act, 1958 and providing educational services to its Students (Girls Students Only). MUST is also registered under GST law having GSTIN- OBAAAIM1982F1Z4. 5, MEF has surplus infrastructure facilities after utlization thereof forts activites including running of schoo. This surplus infrastructure has been let out to MUST for use. The Infrastructure given to MUST for use incues Academic Buildings, certain Hostel Buldings, Office Bullaings, Vilas, and Dining hall 8, MEF has been charging Rent rom MUST for all above builkings ard paying GST @ 18% on the same. 7. MUST is collecting Hostel fees from its students, which includes Lodging and Boarding inthe Campus and GST isnot charged being exempt Lndor Sr. No. 65 of notification no, 12/2017 CTR Dated 28-06-2017 (hips:/laxguru nigoods-and-serviceaxnoty-exemplions-supply-sorvicos- cgst-act imi) as amended. 8. University’s Management is considering a proposal to discontinue use of Dining Hal facilly and hostel bulsing taken on rent asi i finding Aboel provides a 4DI2.N package withthe facil of breakfast. This is a natural bundling of services inthe ordinary course of business. ‘The service of hotel accommodation gives the bundle the essential character and would, therefore, be treated as service of providing atel accommodation > AS-star hotels hooked fora conference of 100 delegates ona lump sum package withthe following fies: Accommodation for the delegotes — Breakfast forthe delegates. — Tea and coffee curing conference Access to fess room for the delegates —Avalabilty of conference room ~ Business centre [As ig evident a bouquet of services is being provided, many of them chargeable to diferent affactve rates of tax. None of the individual constituents are abe fo provde the essential character ofthe service. However, ifthe service is described as convertion servce its able to Capture the entire essence ofthe package. Thus the service may be judged as convertion service and chargeable to full rate. Howover, it wil ho fully justifiable forthe hotel to charge individually forthe services as long as there is no attempt to offload the value fone service onto another service that ls chargeable ata concessional rate 9.2.4 Manner of determining i the services are bundled inthe ordinary course of business ‘Whether services are bundled in the ordinary couree of business would depend upon te normal or frequent practices followed in the area of business fo which services relate. Such normal and frequent practoes adopted in a business can be ascertained from several indicators some of which ae sted below — > The perception of the consumer or the servie receiver. large number of service receivers of such bundle of services reasonably expect such services fo be provided as @ package, ten such a package could be rated as naluraly bundled inthe ordinary course of business. > Majorty of service providers in a particular area of business provide sinlar bun of services, For example, bundle of catering on boars and transport by ai a bundle offered by a major of atines. > Tho nature of the various services in @ bund of services wil also help in determining whether the services are bund in the ordinary course of business. If he nature of services fs such that one ofthe services isthe main service and the other services combined with such service are inthe nature of incidental or ancilary services which help in better enjoyment ofa main service. For example, service of stay in a hotels often combined witha service or laundering of -4 ems of lating of cost par day. Such service's an ancilay service tothe provision of hotel accommodation and the resultant package would be vested as services naturally bundled in the ordinary course of business > Other ilusrative Indicators, not determinative but indicative of bundling of services in ordinary course of business are — hitps:/taxgurainlgoads-and-servicetaxigst-payable-hostelservices-mody.education-foundalion-aarhiml 424 5115725, 606 Pat (GST payable on Hostel Services by Mody Education Foundation: AAR There I a single price or the customer pays the same amount, no matter how much ofthe package they actualy receive or use ~The elements are normally advertised as a package. The diferent. smans are nol available eoparately. ‘The diferent elements are Integral to one overall supply - fone or more is removed, the nature of the supply would he affected [No straight jacket formula can he Isis down to determine whether a service is naturally bundle inthe ovdinary course of business. Each case has to he Individually examined inthe backdrop of several factors some of which are outlined above, 17. From the reading ofthe education guide ofthe CBIC Issued in respect of service tax, Itcan be comprehended that service which are naturally bundled shal be eated as single service based onthe principle supply having dominance. 18. MEF is providing Hostel accommodation fact othe Students which consst of Lodging service alongwith Boarding facility which @ natural combination of service 18. tis pertinent here to discuss the Advance Ruling pronounce in the matter of IN RE SRISAI LUXURIOUS STAY LLP (hps:/taxguruinigoods- ice-taxigs-boarding lodging falites-both-monthl-dalytarits imi) 2020 (36) G.S.T.L. 462 (AAR GST Kar. inthis respoct. The facts of the Ruling ae as under and “The applicant in said ruling was providing following services along with lodging Service in hostel (2) Meats which includes breakfast, lunch and dinner (0) Fully furnished rooms (@) Found the clock security guards atthe premises (6) Housekeeping facitos (6) Washing Machine facies (9 Television m each room (o) ntemet facies (WF avatabie) (h) Vehicte parking facites, The above facts were part and parcel ofthe services provided for which single pice was charged from the service recipients. The applicant \was also charging adtional charges forthe exra-acites opted by the inhabitants in alton to the facies that are curry included in the tar received by the inhabitants but he overall pice would be less than the present exemption limit of Rs. 1000 per day per Unit. The advance Ruling authoty pronounced its ring in respect ofthe falities Inckided in the package of services with lodging service as under Further, the Entry No. 14 of Notification No. 12/2017.Central Tax (Rate) (tps taxguru nigoods-and-service-axinotfy-exemptions-supoly- sorvices-ogst-act hii) is analyzed and it says all services of SAC 8963 provided by such a. supplior having a declared tari of loss than Rs. 1000-00 per day or equivalent would, be exempt. Further since inthis suppl, al the supplies are made as a package with the accommodation service being the principal supply, the ene eupply would be reated as a composite supply of accommodation sevice as per Section 8 of the GST Act, 2017. Hence, the proposed supply of services in question by the applicant would not be lable to tax as per Enty No. 14 of the Notification No. 12/2017-Central Tax (Rate) (hps:taxguru.in/goods-and-service-ax/noily-exemplions-Supphy-services-costact tml) as amended fom time ta time, In respect of te addtional services for which extra charges were recovered, the Authony pronounced its decision as under- 8, Regarding tne third question, it's seen thatthe applicant intends to provide other services in adltion tothe facies that are in adation tothe compulsory services provided and charge the clonts fr the game, Hence, It would amount to providing of services under a separate contract ang 18s per the facites provided, as these services are independent ofthe accommodation services provided. The applicant states thatthe overall charges collected including tho addtional services is ls than Rs. 1000-00 por day per unit of accommodation. The Enity No. 14 of the Notiication No, 1212017-Central Tax (Rate) htps:/taxguruinigoods-and-service-tanoily-exemptions-supply-sorvices-oystacthiml) is vetifed and the description states that “Services by a hotel, inn, guest house, cub, or campsite, by whatever name called, for residential or lodging purposes, having declared tart of a unit of accommodation below one thousand rupees per day or equivalent” and these eervces should belong to Group 9983, The Group 8963 ofthe Service Accounting Codes as annexed to Notification No. 11/2017-Central Tax (Rate) relates those services which are coming under Food, Edible preparations, aleohalie and non-alcoholic beverages serving services, andi the additional services provided by the applicant belong fo the Group 9863, then the tumover ofthese services will also be exempt as they aro covered under the enty 14 of the Notification No. 12/2017-Central Tax (Rate) hips:/laxguruinigoods-and-serviceaxinofy-axemptions-supply-servces- cegstacthtmi), But hose sores which are supplied independently to the clonls which do not belong tothe Group 9963 are Hable to tax at appropriate rates, provided that te applicant is lable for registration hitps:/taxgurainlgoads-and:-servicetaxigst-payable-hostel services mody.education-foundation-aarhiml 524 5115725, 606 Pat {GST payable on Hostel Services by Mody Education Foundation: AAR 20, The view of the applcant MEF also ges strengthen by the above referred advance Ruling whereby the service of ladging along with boarding has been categoricaly held as bund supply on the basis of principle supply of accommodation service and exempted under the st. no. 14 of the exemption Notification No, 1212017-Central Tax (Rate) (hips:!taxguruin/goods-and-servce-taxinotiy-exemptions-supply-services-cgst- acthiml) as amended. Therefore, the applicants of fem opinion thatthe hostel facily alongwith boarding services provided to students of MUST Is exempt tom GST. 21.The registered person therefore wishes fo obtain advance ruling onthe following points (2) Whether Hostel facity which inckides Lodging and Boarding service provided by MEF tothe students of MUST having value of service upto Rs. 10001. per day would be eligible for exemption under enty no. 14 of the Notification No. 12/2017-Central Tax (Rate) (tps:itaxgur.in'goods-and-servce-taxinotiy-exemptions-suppy-servces-cgst-ac hm? 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT ‘Whether Haste facity which includes lodging and Boarding service provided by MEF to the students of must having value of service upto Re 1000. per day would be eligible for exemplion under entry no. 14 of the Notification No. 12/2017-Central Tax (Rate) (hlips:/taxguruinigoods- and:-servico-taxinoly-exemptons-supply-services-cgst-act Mtn)? 3, PERSONAL HEARING In the matlsr personal hearing was granted to the applicant on 17.03.2021 at Room na. 211 NCRB, Statue Circle, Jaipur. Shri Manmohan Mahipal C.A (Authorised Representative) of applicant appeared for PH, During the PH, he reltrated the submissions already made in the writen application. He also made additonal submission during the PH, whichis related to exemption 4, COMMENTS OF THE JURISDICTIONAL OFFICER ‘Tho jurisdictional offcer (Superintendent CGST-Range-XXX, Skar, Rajasthan) has submited his comments vide thair letter which can be summarized as under [Mis Mody Edvoation Foundation has wished to obtain Advance Ruling on following point: — “Whether Hostal facility which includes Lodging and Boarding service provided by MEF tothe students of MUST having value of service upto Rs 1000/- per day would be eligible for exemption under entry no. 14 ofthe Notification No, 12/2017-Central Tax (Rate) (tps:Itaxguruinigoods- and-service-taxinotly.exemptons-supply-services-cgstactMiml)?” Enisy No. 14 of the Notification No, 12/2017-Contral Tax (Rate (ptipsittaxguruin/goods-and-service-taxinotfy-exemptions-supply-services-ogst-act him, is produced verbatim — Stn. Description of Services Rate Condition (ver Service Code (Tar cont) 1“ Hoacieg 9983 Services by a hoa, nn, guesthouse, dub or campsite, by whatever ram called, or Nil residential or bdgng purposes, hong decled tf ofa un of aecommodtion vel ‘ane thovsard ress per day 0” equiva ‘Thus service of accommodation having declared taf ofa unit below one thousand rupees is charged at Ni rate in GST. Now, the point is that the accommodation services provided by Mody Education Foundation are bundle of lodging, boarding, food ete. services, This issue has been covered under Advance Ruling No. KAR ADRG 20/2070, Dated 31st March, 2020 (htips:/taxguruinlgoods-and-service-iaugst-boarding- lodging faclies-both-monthly-dally-taifs.ntmi), wherein thas been ruled thatalf the applicant charges addtional charges for extra facies opted by the ithabitans in aditon tothe facies that are curren include in tho tari received by the inhabitants but the overall price woulé be less than the present exemption mit of Rs. 1,000-00 per day per un, then the same is lable to tax atthe rates applicable to them as they are independent supplies, if thoy do not belong tothe Group 9853. I they belong fo tne Group 8963, thon the same aro exempt as par enty no. 14 of the Notification No, 122017-Central Tax (Rate) (htps:/taxguru ingoods-and:-serice-axnotily-exemptions-supply-services-egst-act him!) SSAC code 8963 includes services of (Accommodation, food and beverage services). In view of above it appoars that Hostel faclty which Includes lodging and boarding service provided by MEF to the students of MUST having value of service upto Rs. 1000 por day would be eligible for exemption under entry No. 14 ofthe Notification No, 12/2017-Central Tax (Rate) (rtpsuitaxguruin/goods-and-service-taxinotij-exemptions-supply-services-cgst-act him 5. FINDINGS, ANALYSIS & CONCLUSION ‘We find that, Mody Education Foundation, Lakshmangath, Sikar, Raasthan shall provide hostel fait which include lodging and boarding facity \whersin food shall be served in dining hall othe student of Mody university of Science & technology, Sika, Rajasthan. The applicant will charge ‘rectly from the students and charges for hostel facility comes out less than 1000 per day, although charges are collected on yearly bass from the students 1. We observe thatthe applicant Is providing accommodation sorvice on rent fo students and also proving some ancilary services tke food facity ete. htps:/taxgurainlgoads-and:-servicetaxigst-payable-hostel services ody. education foundalion-aarhiml 624 5115725, 606 Pat ‘GST payable on Hostel Services by Mody Education Foundation: AAR 2, To examine the facts of applcation and contention ofthe applicant, we need fo refer to concept of supply, composite supply, mixed supply concept of naturally bundled, principal supply and various notiicatons and circulars incidental to these concepts 3. Fits, the provision of hostel accommodation alongwith ancilary fcites falls under ‘Supply as defined under Section 7 of the GST Act, 2017 whichis as under (1) For the purposos ofthis Act, the expression “supply” includes (a) all forms of supply of goods or services or both such as sal, transfer barter, exchange, license, renal, lease or disposal made or agraed to be made fora consideration by a person inthe course or furtherance of business: [As the applicant is supplying accommodation services along wih some ancilary services fora consideration (Rs. Less than 1000)- per day), and charges are callected on yearly bass from the stugerts, the activity falls under the definition of supp. 4, Now, asthe supply involves multiple services, the issue has to be examined whetner the aforesaid supply is a Composite Supply or a Mixed Supaly. Section 2(20) of GST Ac, 2017 defines ‘composts supply’ as under “composite supply’ means @ supply made by a taxable person toa recipient consisting of two or more taxable supplies of goods or services ‘or both, oF any combination thereat, which are natueally bundled and supplied in conjunction wih each other in the ordinary course of business, one of which is principal supply We find that essential components of a composi supply are as under- two or mre taxable supplies; — services should be naturally bundled: ~ supplied in ordinary course of business one of the supply out of whole shouldbe a principal suply. 5. Since, bundiinglNaturaly bundled service has not been defined in GST law, hence, reference can be taken from CBEC Education Guide Issvec in 2012 after introduction of negative lst in erstwhile Service Tax regime when concept of bundling was introduced for tye frst time. The relevant extracts of the Guide are reproduced below: ~ "Bundled service’ means a bundle of provision of various services where in an element of provision of one service is combined wih an lament ar slements of provision of any other service or services. An example f ‘bundled service! would be alr transpart services provided by airings wherein an element of tansportation of passenger by alr combined with an element of provision af catering sevice on boar Each service invalves diferential treatment as a manner of determination of value of two services forthe purpose of charging service taxis afore. Tho rule is —" various elements ofa bundled service aro naturally bundled in the ordinary course of business, i shall be single service which gives such buncle its essential character tod as provision ofa 6, Whether services are bundled in the ordinary course of business or not would depend upon the normal ar frequent practices followed inthe area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from many indicators some of which ae listed below: — |The perception ofthe consumer or the service receiver. large numberof service recelvers of such bundle of services reasor-ably expect sch services tobe provided as a package, then such a package could be treated as naluraly bundled inthe ordinary course of business. ii Majorty of service providers in a paricular area of business provide simlar bundle of services W The nature ofthe various services in a bundle of services wil also help in determining whether the services are bundled in the ordinary course of business We find that naturally bundled services are those services wherein one ofthe services is the main service and the other services combined with such service are inthe nature of incidental or ancilary services which help in better enjoyment of a main service, I curent nature of supply of services is tested based on above factors, ican be ascertained thatthe provision of hostel accommodation coulé be «8 principal supply but ancilary services Ike food cannat be said to arise naturally with the principal service of hostel accommodation anc therefore ae not bundled naturally with principal supply 7. tn view of the above, we find thatthe said supply is nat a Composite Supply, therefore, the facis ofthe case can be examined in respect of ‘Mixed Supply Mixed Supply has been defined in Section 2(74) of GST Act, 2017 as below (74) "mixed supply" means two or more individual supplies of goods or services, or any combination thereat made in conjunction with each ‘ther by a taxable person fora single pice where such supply does not constute @ composts supply. hitps:/taxgurainlgoads-and:-servicetaxigst-payable-hostel services ody. education foundalion-aarhiml 724 5115725, 606 Pat {GST payable on Hostel Services by Mody Education Foundation: AAR IMustration.-A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fut, aerated drnks anc fruit juices when supplied for a single pice is a mixed supply, Each ofthese items can be supplied separately and isnot dependent on any ater. It shal not be a mixed supply if these items are supplies separately, Further, tax labilly ona mixed supply shal be determined as define in Section & (b) of GST Act, 2017 whichis as under “a mixed supply comprising two or more supplies shall be treated asa supply ofthat particular supoly which attracts the highest rate of tx" 8. We observe thatthe services supplied by the applicant such as hostel accommodation, food et. tothe student of Rs. Less than 1000!-per day per student isnot a Composite supply, hence, the services the applicant is supplying 's Mixed Supply 28 per GST Act, 2017 and the applicable rate of taxis the highest rate applicable tothe various services supplied by the applicant. To ascertain rte of GST on Mixed Supply we have to examine rate of GST on services provided by the applicant ta determine the highest rate of tax applicable on whole supply. (2) Entry No.7 of the Notification No. 11/2017-Central Tax (Rate), dated 28-6.2017 (htps:taxgurinigoods-and-servce-taxnoily-ates- supply services-cgst-act imi) as amended, reads as under 7 Hoacing 9963. () Suppl, by way of a8 pat of any sence orn any chor manner whatsoever, of goods sing ood 6 - (Recanmodation, or any avr ae fr human congumpton oink where uch supply oF Serco ash, deleted food and beverage payment or other valuable consideration, provided by a restaurant, eating jot induding 938 sees) farizen, naher having the faclty of aircondioning or canal si-eating in any pat ofthe stabsémes, t anytime dug the year nor having Heence or permit or by whatever rare cals © (@)Acommodaton in hoa, inns, guesthouses, dubs, campsites or athe commercial places meant 6 - {or resdental or lgng purposes having declared taro unt of accommadaton of ane thousand Explanation. ~-declered tf Includes charges fo al amanites provide nthe unt of accommadaon (ven on rel for stay the furs, a contione, aigoratorso any othee amen, bu wnat ‘tcludng any cecountofered an the publshed ares for such unt. (Supa, by may of ora pat of any saree of any ober mann whalsoeve, of goo, beng ood - or any ther ate for human consumption or ary dink, whee such supply or sre i for cash, sores payment foe valde consideration, proved bya reslauran, eng jl elung mess, aizen having ance o: peri orb whatverrame called sere aleshobclquerfr human (6 Supey by way of rapa of any service or in any shor manner whstaever, of goods being food - any ater ert for nua consumpten or any donk, whee such supply or serie for cash, stores pyran rater alate consideration, proved bya restaurant, extn ji nlcing mess, atzen, nein fecityo i-concionng or nal a-eatng in any pao ho establshmant (0) Supply by way ofr as pa of any Srvc orn anyother manner whatsoever outdoor catenng 9 - \ahetin goods, bang food any he tcl for human consumption a any ik wheter ont alcohol uorter human consumption, as part of uch outdo catahing and such suey or sevice Istoreash detered payment o oer vaiblecosisraton (v0 Accommodation in hos, ins, guest houses, cbs, cerpsies or ane commercial places meant | 9 - forrescental or lodging purposes having docked taf of unt of acconmadaton oft thousand auvalent. Explanation "declared an icudes charges fr all amenseseroved tho un of sccarmodsion (ven on rent sake tr, eonone,refegeratr any shor {mendes but witout exuding ary discount fered onthe pulsed charges fer such unt (st) suppl, by way of ras par of any series orn any her mamer whatsoever, f goods ncudng 9 - but not Inte fo food or anyother ace fer human consurpion or any deni (wneter oro alana "qr fr numanconsumpton, where such supply or services fo ah defred payment or etn valuable considoraton, na promises (inching hotel, carvention canter, cli, parl. shamiana or sry eter place, specily ranged for eganizng @ uncon) ogee wh renting af such premises (vn Aceermodaton in ales incuding five star hla, in, ques houses clube, campsites other 14 - ere places moantrrsdental or ling purposes having ecard tare of unt of Explanation —“seched lari includes charges for ll ani provid inthe un of aeconmedaton (ven on ret or tay) the fur, ar eonstone, regertors 2 anyother amentes, bu wNaut slong any stcount fered on he published args for sich an. (09 Aecommodaton, food and beverage srvces oor than () (i (H,G. (,((idane iy - tps: /taxgurainlgoads-and-servicetaxigst-payable-hostel services ody. education foundalion-aarhiml a4 5115725, 606 Pat ‘GST payable on Hostel Services by Mody Education Foundation: AAR (b) Entry No, 14 ofthe Notification No, 12/2017-Central Tax (Rate), dated 286.2017 (hitps:/taxguru.inigoods.ands exemptions -supply-services-cgst-acthtmi) reads as under: rvicetaxinotlty- Notification No, 12/2017-Central Tax (Rate), dated 28-6.2017 (https:!taxguru inigoods-and-service taxinotty-exemptions-supply- rvices-cgstact htm) SSLNo. Chapter, Section, Description of Services Rte Constion Heading, Group (oer for Service Code cent) Canty oo @ ° o © lodging purposes, having eecared tao @ unt of accemmadatoneslow ae thousand rupees par ay oF equivalent ‘The came ie also claiied vide CBIC Circular No, 32/06/2018-GST dated 12th February, 2018 (hip:axguru n/goods-and-service-tax6-new- Clarifications regarding-gst-sarvices him!) The relevant portonis as below- ‘ 2S Socata demas |Smrueper anette tseen fey nosmerremee tnt Marna dest cran er oy | pn toay eruen tte eeeeeeua oe eeetenee ae eee | achctaec aia eesconrgenpraptemne nae mencannn upg asx neon iii 8. Inthe instant case, we find thatthe exemption to accommodation service is applicable in respect of a unit of accommodation where tai is below Rs, 1000! per day, Notification No, 11/2017-CT(Rate) as discussed above provides applicable GST rate as per declared tari of a unit of accommodation. Further, accommodation having declared tari ofa unit of accommodation of ane thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent, the GST rate willbe charged 12%, futher accommadation having declare tai of a Unit of accommadation of two thousan five hundred rupees ard above but less than seven thousand fve hundred rupees per unit per day or equivalent, the GST Rate wil be charged 18%, further accommodation having declared tarif ofa unit of accommodation of seven thousand five hundred rupees & above per unit per day or equivalent, the GST Rate wall be charged 26%, The applicant has stated in thei aplication that they will charge below Rs. 10004 or day, but ithas not boon declared by the appicant thal how many Student will stay ina oom, i more than one students wall stay n a room thon GST rato will be chargeable, since the applicant élé not make clear that how many students wall tay ina roomuni, hence considering non-clanty of tari of a unit of accommodation, the GST rate as per noliication no, 1/2017-Centeal Tax (Rate), dated 28.06.2017 will be applicable to the applicant. sud 10, Further, the applicants providing service of serving af food to students in haste. The said service is classifiable under HSN 9963 as provides under Notifeation No. 11/2017-Central Tax (Rate) dated 28.08.2017 and GST rate will De applicable as per the above natficaton as discussed in para no. 8. In view ofthe above, we find that the services supplied by the applicant is @ Mixed Supply and highest rate of GST will be applicable amongst services provided by the applicant o studs in hostel 11. The applicant has cted various case laws and references viz, MIs. Sisal Luxurious Stay LLP. Kamataka vide Advance Ruling No. KKR ‘ADRG 20/2020, dated 31.03.2020), Mis Logic Management Training Institutes Pv. Lid. Kerla vide Advance Ruling No. KERI76I2019, dated 20.08.2020 (hips /taxgurunigoods-and-servce-taxigstnsblute-imparting.-education-ca-cs-cma-cpa-students hm), contending that the services supplied by them isa composite supply isnot tenable asthe facts are quite diferent from the present application 12. In view of the foregoing, we rule as follows: — RULING In viow of the discussion above the applicant would not be eligible for exemption under entry no, 14 ofthe Notification No, 12/2017-Central Tax (Rate), dated 28-6-2017 (htps:/taxguruinigoods-and-service-taxinotly-exemptions-supply-services-egstact.html) Tage: AAR Runge (he:taxgrs aging), Advance Rng (ups: Raxguru.eagadvancs-uling), goods and srices tx (htpsNaxgursivglgoods and-seviesian}, GST (tpsitaxguruntapgs) + Download Judgment/Order (https /taxguru.in/7link=https:/taxguru in!wp-contentfuploads/2022/03)In-re-Mody-Education-Fou hitps:/taxgurainlgoads-and-servicetaxigst-payable-hostel services ody. education foundalion-aarhiml 924 5115725, 606 Pat {GST payable on Hostel Services by Mody Education Foundation: AAR nay Rotor to Privacy Policy (ipsaxquinfrvacyzaey & Comgkte Terms of Use ane Dielimor hips stagurinsnancldsclemerorantxgue GROUP LINK GROUP LINK G I More oor sen sortnsnntnine Do NEE Google Under \(httos:ttwww.google.com’search? 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