TaxTMI 
TaxTMI 
2021 (11) TMI 858
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....Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. HEALERSARK RESOURCES PRIVATE LIMITED, No.72, Vengadmangalam main road, Pommar, Vadapalani, Chennai 600048 (hereinafter called the 'Applicant') is registered under the GST Vide GSTIN 332100000255ARB. They have sought Advance Ruling on the following questions:- 1. What is the applicable GST SAC cod and the GST rate applicable for the supplies made by it to M/s. Apollo Med Skills Limited (AMSL). 2. Is it a composite supply or a mixed supply? 3. Whether the service is exempted vide Notification No. 12/2017-CT (Rate) dated 28.06.2017. The Applicant has submitted the copy of application in Form GST ARA 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 107 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they are into the business of hospitality providi....
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....r Boys & Girls; v. Furniture/Fixtures viz., Tables, Fans, Exhaust Fans, Lights etc; vi. Cots, Mattresses, Pillows with Covers, Blankets and Bed Sheets for each candidate; vii. Plates and Glasses for each candidate; viii. Kitchen Utensils and Vessels for cooking and serving food; ix. On call Doctor, First Aid kit, Fire Extinguisher; x. Safety lockers for Students; xi. Appointment, of separate wardens for Boys and Girls to ensure students safety; xii. Depute House Keeping staff; xiii. Installation of RO water purifiers in both Boys and Girls Hostel; xiv. electrification for required number of points for Lights, fans etc; xv. Recreation facilities such as Carrom Board, Chess, Ludo, etc; xvi. Genset for 24 hours Power Backup for both Boys and Girls Hostels; xvii. Installation of CCTV camera; xviii. Any other facility in compliance with all relevant rules, regulations as may be required. • The applicant has stated that in consideration for the above services provided by them, an amount of Rs. 9,000/- per candidate per month (i.e., Rs. 300/ per candid....
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....tely free of cost training, with all necessary books & study material, a 'tablet PC and uniforms. In residential training centres, free accommodation and food is provided to the trainees. As part of the implementation of its projects under DDU GKY, AMSL is required to provide boarding and lodging facilities to the candidates enrolling for these courses. In this regard, AMSL has engaged the applicant, to provide the boarding & lodging facilities and such other agreed services, to AMSL in terms of SOP provided by the Government with respect to implementation and furtherance of its projects under DDU GKY. for the purpose of the above, it was agreed that the applicant would tie up with various other third party service providers to ensure that such agreed services are rendered to AMSL. As per the terms of the agreement, the consideration payable to the applicant shall include the fixed and variable costs related to provision of the agreed services. The applicant shall charge Rs. 3000/ or Rs. 3,500/ per candidate per month depending upon the location towards accommodation services provided which shall be a fixed cost. The applicant shall charge Rs. 4,500/ or Rs. 5,500/ per candidate per....
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....enger by air is combined with an element of provision of catering service on board. Another example provided is that of a hotel providing a 4D/3 N package with the facility of breakfast. This is a natural bundling of services in the ordinary course of business. They have also referred to some of the indicators mentioned in the CBEC Education Guide to ascertain such normal and frequent, practices. Further, applying the definition of Principal Supply as per Section 2(90) of CGST Act, 2017, the applicant has viewed that for the service in hand, the primary and predominant activity of the applicant is to provide accommodation to the candidates at the hostels; that they have created the infrastructure to mainly provide the services of accommodation by taking, up hostel buildings etc., on rent/lease and then supplying a significant package of services to the occupants; that the supply of food and other amenities to candidates is an ancillary but an integral part, of the principal supply; that the case in hand can be compared to the example of a Hotel providing the facility of breakfast cited in the Education Guide, The same has been considered to be a composite supply with the principal ....
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....1. The Authorised representatives, CA. Viral Khan da r and CA. Rajendra Kumar. P and CA N.K. Bharath Kumar appeared for the hearing and reiterated their submissions. The Members called for copies of bills raised on the service receiver mainly M/s Apollo Med Skills Ltd, documents evidencing collection of lodging and boarding charges, accounts of the applicant to establish other facilities provided for along with the relevant costing and documentary evidence for schemes approved by Deen Dayal Upadhyay Grameen Koushalya Yojana. The applicant was also asked to submit the details on duration of stay by the inmates, number of inmates accommodated in a room. The Members also gave instructions to state Assessment circle to verify the place of business of the applicant and report. 3.2 The applicant vide their letter dated 26.07.2021 informed that their new address is as follows:- Vanagaram Ambattur Road, Ayanambakkam, Ambattur Industrial estate, C/o Apollo Hospitals Campus, Adjacent, to Apollo Nursing College. Chennai 600005 and the operational Hostel addresses are as follows: 1. No.5, Sathyamoorthy Street, Devaraj nagar, Dasarathapuram, Saligramam, Chennai 600093 2.....
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....ut the duration of the course; which varies from 3 months to one year; there are no individual rooms for the candidates as it is a dormitory style of accommodation. The applicant furnished invoice copies, sanction order given to AMSL, as a project implementation authority, SOP Part 1 dt. 21.09.21, Proceedings of the Chief Executive Officer, TNSRLM dt. 12.01.17. 4. The jurisdictional State authority submitted the following:- (i) Kanchipuram (Rural) Assessment circle: The premises at Lord Venkateshwara Engineering college campus was verified on 09.08.21, wherein training was conducted by AMSL and the accommodation was provided by the college. (ii) Vanagaram Assessment circle:- The circle AC has reported that the place of business of M/s. Healers Ark Resource at Vanagaram was visited on 30.07.2021, which is the administrative office of the applicant and that they are engaged in the activities like providing facility of lodging and boarding youth in various health care related vocational programmes; that the supply is composite in nature and the SAC code is 996311 and the rate chargeable is 18%; that the benefit of notification no. 12/2017 cited supra is not ava....
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....ed supply? 3. Whether the service is exempted vide Notification No. 12/2017-CT (Rate) dated 28.06.2017. The questions raised are on the classification, applicability of notification which are covered under the ambit of this authority under Section 97(2) of the CGST Act, 2017. Further on verification of the premises from where the applicant proposes to extend the services, it was reported that the applicant do not hold lien of such premises. The applicant in this regard has referred to the extension of service provider agreement dt. 01.09.2020 wherein it was agreed to provide the activities enumerated in the Principal agreement for a period of 2 years effective from 01.09.2020 and stated that no activity is being carried on in the hostels at present due to the prevailing pandemic situation and the activities would resume once the Government issues guidelines for the conduct of the training sessions. Therefore, the questions raised by the applicants as above are admissible before this Authority under Section 95a read with Section 97(2) of the CGST/TNGST Act, 2017. 7.1 From the submissions of the applicant, it is seen that the applicant has rural into a service provider....
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....l relevant rules, regulations as may be required. As per Schedule III, the consideration for such activities are provided region wise. The said consideration provides total cost per candidate per month with fixed allocation towards rent, for the accommodation and a variable cost on Head Count basis towards the food and other facilities. On examination of the invoice copies (Sl.No.FTN 02 1920 11 dt. 29.02.2020 & RTN 02 1020 11 dt. 29.02.2020), it is seen that the applicant has raised tax invoice with details of customer as AMSL; name: DDU-GKY, Tamilnadu and have charged GST at the rate of 18% on the rental charges and 5% on the food bill, classifying both the services under SAC 996311. 7.2 On the interpretation of law, the applicant has stated that, as part of implementation of its projects under DDU-GKY, AMSL is required to provide boarding and lodging facilities to the candidates enrolling for these courses and such other agreed services in terms SOP provided by the Government. The applicant has offered to undertake the 'Hospitality' services of boarding and lodging for the enrolled candidates. As per the terms of agreement entered into by the applicant with AMSL, the consid....
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....s AMSL. The fact that the supply is being procured by AMSL for implementing the Vocational Scheme under DDU GKY is not relevant to decide on the classification of the supply being made by the applicant. The supply extended by the applicant is providing accommodation, food and such other agreed services to AMSL, i.e.. the candidates undertaking the vocational courses, chosen by AMSL for which the applicant raise the invoice on AMSL as per the agreed prices. The question raised before this authority and to be decided in this case is whether the activities undertaken by the applicant as per the scope of the agreement entered into with AMSL is a composite supply with provision of accommodation to the candidates/students enrolled for the vocational courses in health care under the DDU GKY scheme as the principal supply and if so, whether the entire activity is exempted under Si. No. 11 of Notification no. 12/2017-CT (Rate) dt. 28.06.2017. I find that, the question raised is relevant to the facts of supply being made by the applicant, and also find that the classification opined by the learned SGST Member under 'SAC 998599 Other Support Services n.e.c.' is a residual entry to be adopted ....
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....is issued ) and the food and other facilities are paid by AMSL based on the headcount/actual number of candidates residing at the hostels for which a separate invoice is issued) i.e., it is seen that the accommodation services are to be provided for 200 candidates/students and the food and other facilities are based on actual consumption arrived at as the variable cost. the applicant raises two separate invoices monthly on AMSL, one for accommodation and other for the food and other facilities. It is seen that the above invoices are raised as per clause 4 of the agreement read with Schedule III. Mere issuance of two different invoices does not mean that the services provided are independent. The agreement entered into explicitly expresses that the service required from the applicant is hospitality services of separate accommodation for girls and boys along with provision of food and other agreed services relating to amenities. Therefore the entire supply is naturally bundled in the course of business of hospitality services and the principal supply envisaged in the agreement is provision of accommodation while provision of food and other amenities are bundled in the course of exten....
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....licable SAC is 9963, more specifically 99632. 9.5 The applicant claims exemption as per SI.No. 14 of Notification no. 12/2017-CT(Rate) dt.28.06.2017. The said entry is as below: Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 14 Heading 9963 Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having value of supply of a unit of accommodation below or equal to one thousand rupees per day or equivalent. Nil Nil The clarification vide Circular no.32/06/2018 GST dt. 12.02. 2018 on the applicability of exemption under Sl. No 14 above to the accommodation services to students relied on by the applicant is extracted below:- S.No. Issue Clarification 1 Is hostel accommodation provided by Trusts to students covered within the definition of Charitable Activities and thus, exempt under Sl. No. 1 of notification No. 12/2017-CT (Rate). Hostel accommodation services do not fall within the ambit of charitable activities as defined in para 2(r) of notification No. 12/2017-CT(Ra....