TaxTMI 
TaxTMI 
2021 (7) TMI 534
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....of the KSGST Act, Rules and the notifications issued there under. 3. Brief facts of the case: The new venture is a resort, in Muhamma in Alapuzha district. As part of this venture, house boats are being acquired and furnished. These house boats are to be used for cruises, overnight cruises and for day trips. Meals are provided as part of a package. Alcohol provided, if any, is to be billed separately and KGST will be charged. The boarding point may or may not be the point of disembarkation. The boats procured are to be furnished with state-of-the-art bedrooms, dining rooms, halls and kitchens. The rate proposed to be charged by the applicant is an all-inclusive fare for transportation, accommodation, food services and other incidental services. 4. The applicant requested for advance ruling on the following; 1 (a) Whether the service rendered by the applicant falls under the Chapter 99, Heading 9964 and Service Code 996415? (b) Whether the rate provided in Notification No.11/2017-Central Tax (Rate) dated 28-06-2017 and Notification No.8/2017-Integrated Tax (Rate) dated 28-06-2017 under heading 9964 and description in point (vii) having a GST rate of 18% is....
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....te of 18%. 5.4. Regarding availability of Input Tax Credit, they will be I has incurred expenses on refurbishing and furnishing the vessel. They are entitled to claim input tax credit as provided by Section 17 of the CGST Act. Further as the services rendered by them are specified under Section 17 (5) (aa) (i) (B) input tax credit is available for expenses incurred by them on refurbishing, furnishing, maintaining and repairing the vessel. The input tax credit on supply of food etc provided in the consolidated price for hire of house boat is also available in view of the provisions in section 17 (5)(b). 6. Contentions of the Jurisdictional Officer: The classification 996415 is local water transport service of passengers. From the application it is not clear whether the passenger's entrance and exit are at different places or at same place. If at same place, it works as a floating restaurant and not as a passenger transport service. 7. Personal Hearing: The applicant was granted opportunity for personal hearing on 06.01.2021. The authorised representative of the applicant attended the personal hearing. He reiterated the contentions made in the application and reque....
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....ction or Heading Description of Service Rate (%) Condition 8 Heading 9964 (Passenger transport services) vii)Passenger transport services other than (i), (ii) (iii), (iv), (iva), (v) and (vi) above. 18 Nil The services rendered by the applicant that are classifiable under Heading 996415 is covered by the above entry in Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 and is accordingly liable to GST at the rate of 18%.[9% - CGST + 9% -SGST] 8.4. The third issue to be decided is regarding the eligibility of the applicant for ITC. Sections 16 to 18 of the CGST Act, 2017 enumerates the circumstances in which ITC is allowed and the conditions, limitations and the procedure subject to which the ITC can be claimed. Section 16 of the CGST Act pertains to eligibility and conditions for taking input tax credit. Sub-sections (1) to (4) of Section 16 prescribes the basic I essential conditions to be satisfied for availing/ taking input tax credit. Sub-section (1) provides that every registered person shall subject to such conditions and restrictions as may be prescribed and in the manner specified in Section 49, be entitled to take credit of input tax....
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....t tax credit in respect of such services shall be available- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) where received by a taxable person engaged- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; (b) the following supply of goods or services or both,- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply. 8.5. W....