Ruling: Applicant's Mixed Services Taxed at 18% under GST Act

The ruling determined that the Applicant's services, including lodging, housekeeping, laundry, medical assistance, and food provided to students, constituted mixed supplies rather than composite supplies under the GST Act. As mixed supplies, the services were deemed taxable at the highest applicable rate of 18%. The Applicant did not qualify for exemption under specific provisions, with lodging below a certain amount exempted and food taxed at 5%. The decision was considered valid unless voided under the GST Act provisions.

---

---

Issues:
1. Admissibility of the Application
2. Interpretation of composite supply under GST Act
3. Applicability of exemption under Notification No. 12/2017-CT (Rate)
4. Classification and taxability of services provided

Issue 1: Admissibility of the Application
The Applicant sought a ruling on whether their service to students for lodging along with food constitutes a composite supply under the GST Act and is eligible for exemption under Notification No. 12/2017-CT (Rate). The Advance Ruling Authority found the application admissible under Section 97(2)(a) & (b) of the GST Act as the question raised had not been decided by any authority and no objection was raised by the Revenue officer.

Issue 2: Interpretation of Composite Supply
The Applicant provided services to students including lodging, housekeeping, laundry, medical assistance, and food under a consolidated charge. The Revenue suggested the services might fall under Composite Supply, but the Authority determined the services were not composite as different considerations were paid for different packages of services offered, making them mixed supplies taxable at the highest applicable rate of 18%.

Issue 3: Applicability of Exemption
The Authority clarified that the Applicant, not being an educational institution, did not qualify for exemption under Sl. No. 66 of the Exemption Notification. However, lodging facilities offered below Rs. 1000 per day were exempt under Sl. No. 14 of the Exemption Notification, while food was taxable at 5% rate. Housekeeping and laundry services were classified and taxable at 18% under specific entries in the Rate Notification.

Issue 4: Classification and Taxability of Services
The Authority observed that the services offered were a mixed supply, not composite, as different considerations were charged for different service packages. As a mixed supply, the entire combination of services was taxable at the highest rate of 18% under Section 8(b) of the GST Act. The ruling stated that the value of the services offered would be taxable at the applicable rate, considering them as mixed supplies.

In conclusion, the ruling declared that the Applicant's services were mixed supplies, not composite, and were taxable at the applicable rate. The decision was valid unless declared void under the provisions of the GST Act.

---