2019 (10) TMI 525

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.... Karnataka, have filed an application on 23/04/2018 for advance ruling under Section 97 of CGST Act 2017 & KGST Act 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01, discharging fee of Rs. 5,000/- each under CGST Act 2017 & KGST 2. The applicant, having his registered office at B6/ 17, Safdarjung Enclave, New Delhi-110029 is proposing to operate hotels and rent out rooms to the employees of the SEZ units. The services rendered by the hotels are entirely consumed at the premises itself. 2.1 The applicant contended that Section 12(3) of the IGST Act 2017 provides that place of supply of service by the way of lodging accommodation of the hotel shall be the location at which immovable property located. Sinc....

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....In view of the above, the applicant sought advance ruling on the following questions: a. Whether accommodation service proposed to be rendered by the applicant to SEZ units are liable to CGST and SGST or IGST? b. If the accommodation service to SEZ are covered under IGST Act, can these be treated as zero rated supplies and the invoice be raised without charging Tax after executing LUT under section 16? PERSONAL HEARING / PROCEEDINGS HELD ON 21/05/2018 4. Sri. S. Hanish, Chartered Accountant and duly authorised representative of the applicant appeared for personal hearing proceedings held on 21.05.2018, reiterated the facts narrated in their application. 5. FINDINGS AND DISCUSSION 5.1 We have considered the subm....

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....ed as  Supplies to SEZ Developer / SEZ unit. 5.4 The Central Government has issued a Circular bearing No.48/22/2018-GST dated 14th June 2018 in which it is clarified as under: Issue 1. Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an inter-State supply (under section 7(5)9b) of the IGST Act, 2017) or an intra-state supply under section 12(3)(c) of the IGST Act, 2017? Clarification: 1.1 As per section 7(5)(b) of the Integrated Goods and Services Act, 2017 (IGST Act in short), the supply of goods or services or both to a SEZ developer or a SEZ Unit shall be treated to be a supply of goods or s....

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....as under: "Issue 2: Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc? Clarification: 2.1 As per section 16(1) of the IGST Act, "zero rated supplies" means supplies of goods or services or both to a SEZ developer or a SEZ unit. Whereas, section 16(3) of the IGST Act provides for refund to a registered person making zero rated supplies under bond/LUT or on payment of integrated tax, subject to such conditions, safeguards and procedure as may be prescribed. Further, as per the second proviso to rule 89(1) of the Central Goods and Services Tax Rules, 2017 (CGST Rules in short....