HSN for Membership of Club/Guest House

[Ritesh Mehta]

What would be the HSN/SAC for membership of a club/guest house?

What would be the nature of tax (S+C or I - GST) if the booking office is in one state (Say Maharashtra) but the property is located at another state (Say Karnataka) and the customer is located in Maharashtra?

[KASTURI SETHI]

Chapter/Heading (HSN) is 9995. Type of tax is CGST + SGST. Consumption of service is where club is located (Karnataka). Club located in Karnataka cannot charge IGST as service is consumed by the customer in Karnataka itself. Mere booking in Maharashtra does not change the place of consumption which is located in Karnataka (Supplier of service).

[Ganeshan Kalyani]

The tax charged by the club/guest house is going to be cost for you, in case if you don't have place of business in the State of Karnataka. The club/guest house service provider cannot charge IGST. They must have to charge CGST+SGST.

AI Summary

HSN Code 9995 Clarified: Club Membership Taxed with CGST & SGST in Karnataka, Not IGST Despite Maharashtra Booking. A query was raised regarding the Harmonized System of Nomenclature (HSN) for club or guest house membership and the applicable Goods and Services Tax (GST) when the booking office and customer are in Maharashtra, but the property is in Karnataka. It was clarified that the HSN code is 9995, and the applicable tax is Central GST (CGST) plus State GST (SGST) since the service is consumed in Karnataka. The service provider cannot charge Integrated GST (IGST) because the service consumption occurs in Karnataka, despite the booking being made in Maharashtra.