Taxable and Exempt Services under SAC 9997: Court Rules on Vehicle Fees, Tonsuring, Prasadam, Leasing

The court ruled that auctioning for vehicle entry fees, tonsuring services, service charges, and Vahana Pooja are taxable under SAC 9997 at 9% CGST and 9% KGST. Sales of prasadam are exempt, while non-prasadam items are taxable at appropriate rates. Leasing commercial shops is exempt if rent is below Rs. 10,000 per month; otherwise, it is taxable at 9% CGST and 9% KGST. Accommodation services below Rs. 1,000 per day per room are exempt. Seva and special darshan fees are exempt as they are not considered a supply. Renting Kalyana Mandapams is exempt if rent is below Rs. 10,000 per day. Direct collection of vehicle entry fees is taxable at 9% CGST and 9% KGST. Future similar activities through tender or auction are taxable at 9% CGST and 9% KGST.

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Issues Involved:
1. Taxability of vehicle entry fees.
2. Taxability of sales of prasadam and other articles.
3. Taxability of leasing commercial shops.
4. Taxability of tonsuring services.
5. Taxability of accommodation services.
6. Taxability of seva and utsava fees.
7. Taxability of special darshan fees.
8. Taxability of Kalyana Mandapa services.
9. Taxability of Vahana Pooja services.
10. Taxability of vehicle entry fees.
11. Taxability of future similar activities through tender or auction.

Detailed Analysis:

1. Vehicle Entry Fees:
The applicant transfers the right to collect vehicle entry fees through auction. This activity is classified under SAC 9997 and is covered under entry no.35 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, liable to CGST at 9% and similarly under KGST.

2. Sales of Prasadam and Other Articles:
Sales of prasadam are exempt from tax under entry no. 98 of Notification No.2/2017 - Central Tax (Rate) dated 28.06.2017. However, sales of non-prasadam items like cloth bags are taxable at appropriate rates.

3. Leasing Commercial Shops:
Leasing of commercial shops is exempt if the rental value is less than Rs. 10,000 per month per shop under entry no.13 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017. If the rent exceeds Rs. 10,000 per month, it is taxable at 9% CGST and 9% KGST under SAC 9972.

4. Tonsuring Services:
The right to collect fees for tonsuring services is transferred through auction. This is classified under SAC 9997, covered under entry no.35 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, liable to CGST at 9% and similarly under KGST.

5. Accommodation Services:
Accommodation services provided to pilgrims with charges less than Rs. 1,000 per day per room are exempt under Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017.

6. Seva and Utsava Fees:
Seva services for religious ceremonies and poojas are not considered a supply under Section 7 of the CGST Act, 2017, and are exempt from tax as per entry no.13 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017.

7. Special Darshan Fees:
Special darshan fees are exempt from CGST and KGST as they are not considered a supply and fall under entry no.13 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017.

8. Kalyana Mandapa Services:
Renting Kalyana Mandapams is exempt from CGST and KGST if the rental is less than Rs. 10,000 per day, as per entry no.13 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017.

9. Vahana Pooja Services:
The right to collect charges for Vahana Pooja is transferred through auction, classified under SAC 9997 and covered under entry no.35 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, liable to CGST at 9% and similarly under KGST.

10. Vehicle Entry Fees:
Direct collection of vehicle entry fees by the applicant is taxable at 9% under CGST and 9% under KGST as per entry 11(ii) of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017.

11. Future Similar Activities:
Future tendering of the right to collect charges and provide services is taxable at 9% under CGST and 9% under KGST as per entry no.35 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017.

Rulings:
1. Auctioning for vehicle entry fees, tonsuring services, service charges, and Vahana Pooja are taxable under SAC 9997 at 9% CGST and 9% KGST.
2. Sales of prasadam are exempt, while non-prasadam items are taxable at appropriate rates.
3. Leasing commercial shops is exempt if rent is below Rs. 10,000 per month; otherwise, it is taxable at 9% CGST and 9% KGST.
4. Accommodation services below Rs. 1,000 per day per room are exempt.
5. Seva and special darshan fees are exempt as they are not considered a supply.
6. Renting Kalyana Mandapams is exempt if rent is below Rs. 10,000 per day.
7. Direct collection of vehicle entry fees is taxable at 9% CGST and 9% KGST.
8. Future similar activities through tender or auction are taxable at 9% CGST and 9% KGST.

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