Tax Ruling: Accommodation service exempt from GST, food service taxed at 5%. Separate invoices issued.

The ruling determined that the accommodation service (SAC 99632) provided by the applicant is exempt from GST, while the food service (SAC 99633) attracts 5% GST. The services were not classified as either a composite supply or a mixed supply, as separate invoices were issued for accommodation and food services. The accommodation service qualifies for exemption under Notification No.12/2017-CT (Rate) due to the declared tariff being below one thousand rupees.

---

---

Issues Involved:
1. Applicable GST SAC and GST rate for the supply of service.
2. Determination of whether the service is a composite supply or a mixed supply.
3. Exemption status under Notification No.12/2017-CT (Rate) dated 28-06-2017.

Issue-wise Detailed Analysis:

1. Applicable GST SAC and GST Rate for the Supply of Service:
The applicant, engaged in providing boarding, lodging, and other services to AMSL, sought clarity on the applicable GST SAC and rate. The ruling determined that the applicable GST SAC for the described services is 9963. The accommodation service (SAC 99632) provided by the applicant to AMSL is exempted from GST as per Notification No.12/2017-CT (Rate) dated 28-06-2017, since the declared tariff of a unit of accommodation is below one thousand rupees. However, the supply of food service (SAC 99633) attracts GST at 5% as per Sl.No. 7(ii) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 13/2018-Central Tax (Rate) dated 26.07.2018.

2. Composite Supply or Mixed Supply:
The applicant questioned whether their services constituted a composite supply or a mixed supply. The ruling clarified that the services provided by the applicant do not constitute a composite supply. Composite supply, as defined under Section 2(30) of the CGST Act, 2017, involves two or more taxable supplies that are naturally bundled and supplied in conjunction with each other in the ordinary course of business, with one being a principal supply. The applicant's services were not considered naturally bundled, as separate invoices were raised for accommodation and food services. Therefore, the services do not meet the criteria for composite supply.

Similarly, the services provided by the applicant do not constitute a mixed supply. Mixed supply, as defined under Section 2(74) of the CGST Act, 2017, involves two or more individual supplies made in conjunction with each other for a single price, which does not constitute a composite supply. Since the applicant provides two separate services for different prices, the services do not meet the criteria for mixed supply.

3. Exemption Status under Notification No.12/2017-CT (Rate) dated 28-06-2017:
The applicant sought clarity on whether their service is exempted under Notification No.12/2017-CT (Rate) dated 28-06-2017. The ruling confirmed that the accommodation service provided by the applicant is exempted under this notification, as the declared tariff of a unit of accommodation is below one thousand rupees per day. However, the supply of food service is taxable at 5% GST as per the relevant notifications.

Conclusion:
The ruling provided a clear classification and tax treatment for the services provided by the applicant. The applicable GST SAC for the services is 9963. The services do not constitute either a composite supply or a mixed supply but are considered two separate supplies. The accommodation service is exempt from GST, while the food service attracts GST at 5%.

---