Applicable Tax Rate

[VIGNESH]

sir, accomodation service provided by a hotel in tamil nadu , which has highest room tariff of ₹ 7000/- and charges 12% tax rate, my question is - when Rooms are given to SEZ unit in tamil nadu for accomodation of employees , what is the tax applicable?, Tax rate applicable?. kindly clarrify

[Rajagopalan Ranganathan]

Sir,

The accommodation service is availed by you out side the SEZ Area. Therefore it is taxable. Only gst paid on goods or services or both are consumed within SEZ area they are exempted from payment of gst. Since the said service is consumed outside SEZ area you canno claim refund of gst paid on the ground of import of such service.

[KASTURI SETHI]

Dear Querist,

Also go through this decision of AAR.

IN RE : POPPY DOROTHY NOEL - 2019 (10) TMI 619 - AUTHORITY FOR ADVANCE RULING, KARNATAKA

[Ganeshan Kalyani]

I agree with the views of Sri Rajagopalan Sir.

AI Summary

GST on Hotel Accommodation for SEZ Units Taxable at 12% if Provided Outside SEZ; No Refund Available. A query was raised regarding the applicable Goods and Services Tax (GST) rate for accommodation services provided by a hotel in Tamil Nadu to a Special Economic Zone (SEZ) unit. The hotel charges a 12% tax rate for rooms with a tariff of 7000. It was clarified that since the accommodation is provided outside the SEZ area, the service is taxable, and GST paid cannot be refunded. A reference to a decision by the Authority for Advance Ruling in Karnataka was also suggested for further understanding. Another participant concurred with this interpretation.