TaxTMI 
TaxTMI 
2019 (4) TMI 1451
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....he case: - Shree Ramnath Bhimsen Charitable Trust is running girl's hostel in the name of Shree Ramesh Sewa Sadan and Godavari Sewa Sadan (hereinafter referred to as 'hostel'). The hostel is providing basic facilities which are required to stay and to study which include well-furnished residence, round the clock security, homely ambience, nutritious food, ample parking space etc. and in consideration, hostel is charging a nominal lump-sum fee of Rs. 6000/- per month per boarder. In other words hostel is charging a single amount for providing above-mentioned services to the boarders. The hostel is being run by a charitable trust which is a non-profit entity, accordingly the income tax department has also given the exemption certificate as the hostel is not working for profit. Further, the hostel is carrying its activity in such a way that the occupants are members of hostel and hostel is collecting the charges for the maintenance. Thus, the hostel is working as a non-profit concern as whatever consideration is charged from the occupants, the same are only for meeting the maintenance and administrative expenses for running the hostel. 3. Contention of the Applicant: 1. Sons ....
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....d planned activities. Chiefly British a supervised institutional residence or shelter (as for homeless people). v. In Collins Dictionary: "A hostel is a large house where people can stay cheaply for a short period of time. Hostels are usually owned by local government authorities or charities". vi. In common parlance: A hostel is an establishment which provides inexpensive food and lodging for a specific group of people, such as students, workers, or travelers. The word hostel can also used as a synonyms of cheap hostel, youth hostel, YMCA, YWCA, bed and breakfast, B&B, boarding house, guest house, pension etc, from the above definitions, it can be easily perceived that the hostel is meant for residential or lodging purpose or can also be interpreted as guest house, inn for the purpose of staying with amenities. vii. The Hostel due to implementation of GST was in hesitation about the tax implications to be followed when providing services in the ordinary course of its business. 1.1 That as mentioned above hostel is supplying service of renting or rooms to be used as residence along with ancillary facilities which are necessary with the main service. The applicant is getting....
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.... a unit of accommodation below one thousand rupees per day or equivalent is exempted from GST. 1.6 That to qualify the above-mentioned exemption the supplier of service must fall under this: Services: - The Hostel is an inn which gives rooms on rent to girl students; hence it is duly covered under supply of service. Hotel, inn guest house, club or campsite; In the present case, the hostel is providing the rooms to boarders and therefore, the question arises, whether the hostel will be covered under the hotel, inn guest house, club or campsite or not. In this regard the term hostel is neither defined in any of GST Acts, nor defined under the general Clause Act and therefore, we are borrowing the definition from Merriam Webster dictionary which defines hostel. INN: - AN inexpensive lodging facility for usually young travelers that typically has dormitory-style sleeping arrangements and sometimes offers meals and planned activities. Thus, the learned and widely known dictionary has defined the hostel which specifically includes the inn and accordingly in our considered view, the hostel can also be interpreted as INN. By whatever name called: - That the Government in his wisdom,....
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.... Food supplied to the patients: Health care services provided by the clinical establishments will include food supplied to the patients; but such food may be prepared by the canteens run by the hospitals or may be outsourced by the Hospitals from outdoor caterers. When outsourced, their should be no ambiguity that the suppliers shall charge tax as applicable and hospital will get no ITC. If hospitals have their own canteens and prepare their own food; then no ITC will be available on inputs including capital goods and in turn if they supply food to the doctors and their staff; such supplies, even when not charged, may be subjected to GST. Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. 4. Personal Hearing:- In keeping with the established principles of natural justice, personal hearing in the matter was extended to the authorized representative of the applicant and accordingly, Mr. J.K. Gupta (CA) and Shri Kamal Kishor Agrawal trustee appeared before us for hearing on 14.01.....
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....s. 5.3 The applicant is running two girls hostels. They are providing 205 bed facility at Shee Ramesh Sewa Sadan which include 12 single bedrooms and 550 beds facility including 37 single bed rooms at Godavari Sewa Sada. All the rooms are air-conditioned. For the above accommodations, monthly charges of Rs. 6000/- per month are paid by the occupants. The following facilities are jointly and exclusively being provided to the occupants of hostel:- Canteen: - The hostel has well maintained canteen which provides healthy diet and hygienic food. Parking Facility:- Students are provided parking facility in the hostel campus which is very safe & spacious. Hot Water Facility:- The hostel has solar geyser which ensures hot water facility to the students. Guest Rooms:- There are provision to accommodate the parents of occupants in the three guest rooms. Temple:- Hostel also comprises of a temple at the ground floor. Above mentioned facility and accommodation is provided in consideration of Rs. 24000/- charged quarterly from boarders. The receipts of above have been attached hereto. The applicant have applied to declare the above services to be treated as composite supply under section....
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....upplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; Section-2(108):- "taxable supply" means a supply of goods or services or both which is leviable to tax under this Act; 5.4 From the above provisions it is clear that when two or more taxable supplies either of goods or services or both occurs; it may be treated as mixed or composite supply. Section 2(74) clarify the meaning of mixed supply as when two or more supplies occurs against a single price and is different from composite supply, then it is termed as 'mixed supply', Section 2(30) specifies following determinants to determine composite supply:- 1. Two or more taxable supplies of goods or services or both, or any combination thereof, 2. Supplies are naturally bundled, 3. Supplied in conjunction with each other in the ordinary course of business, 4. One of which is a principal supply. With regard to above, on observation of documents/brochure/submitted by the applicant it is evident that the girls residing in both the hostels are provided with various facilities like food supply from canteen, parking space, coaching, library, entertainment whi....