Classification of Services and GST Liability Ruling: SAC 997212, Residential Exemption, CGST Act Analysis

The Authority classified services provided by Sri DMS Hospitality Private Limited to Sodexo Food Solutions India Private Limited and by the building owner to Sri DMS Hospitality Private Limited under SAC 997212, taxable at 18%. The exemption for renting residential dwellings under GST Notification No. 12/2017 was deemed inapplicable as the premises were non-residential. EMI charges were considered a supply of goods taxable under the CGST Act, while security services were classified under SAC 998529, also taxable at 18%. The ruling provided detailed analysis of agreements and GST provisions to determine tax liability.

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Issues involved:
1. Classification of services provided by Sri DMS Hospitality Private Limited to Sodexo Food Solutions India Private Limited.
2. Classification of services provided by the building owner to Sri DMS Hospitality Private Limited.
3. Applicability of GST Notification No. 12/2017-Central tax (Rate) dated 28th June 2017 regarding the exemption for renting of residential dwellings.
4. Applicability of GST on EMI per month charged from Sodexo Food Solutions India Private Limited and security services provided.

Analysis:

Issue 1: Classification of services provided by Sri DMS Hospitality Private Limited to Sodexo Food Solutions India Private Limited
The applicant sought an advance ruling on the classification of services provided, including rental or leasing services involving non-residential property. The Authority analyzed the agreements between the parties and concluded that the services provided fall under SAC 997212 and are taxable at 18%.

Issue 2: Classification of services provided by the building owner to Sri DMS Hospitality Private Limited
The Authority examined the agreements and determined that the services provided by the building owner to Sri DMS Hospitality Private Limited also fall under SAC 997212 and are taxable at 18%.

Issue 3: Applicability of GST Notification No. 12/2017
Regarding the exemption for renting of residential dwellings, the Authority found that the specific exemption under Notification No. 12/2017 was not applicable to the case at hand, as the premises in question were deemed non-residential based on the agreements and observations.

Issue 4: Applicability of GST on EMI and security services
The Authority ruled that the EMI charged for goods supplied constitutes a supply of goods under the CGST Act and is taxable at the applicable rates. Additionally, the security services provided are classified under SAC 998529 and are taxable at 18%.

In conclusion, the Authority provided detailed reasoning for each issue raised by the applicant, analyzing the agreements, relevant notifications, and GST provisions to deliver a comprehensive ruling on the classification and tax liability of the services provided in the case.

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