2022 (5) TMI 962

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....ities to the delegates in the event at an all inclusive registration fees: a. Technical Theme - based Seminars b. Access to exhibition c. Interactive workshop and scientific session d. Hotel Room Accommodation e. Cultural programs, lunch & dinner f. Airport Pickup & Drop. 4. ISCCM has submitted that the interested local, national & international vendors will be offered to participate in the trade fair to showcase and exhibit their products against certain participation charges. Further, various brand promotion packages will be offered to local, national & international vendors in the course of the event. 5. ISCCM submits that bundle of services is being offered to the delegates; reference to the concept of 'composite supply' under CGST Act, 2017 is required: (30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; 6. ISCCM has submitted that....

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....f services under GST is provided vide Annexure of Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017, relevant extracts of the Annexure and Notification is as under: 444 Group 99859 Other Support Services 450   998596 Events, exhibitions, conventions and trade shows organisation and assistance services     998599 Other support services nowhere else classified Notification No. 11/2017 - Central Tax (Rate) 23 Heading 9985 (Support Services) Support Services other than (i) and (ii) above 9 - ISCCM understands that services by ISCCM to the delegates shall be classified under HSN 998596 taxable at the rate of 18% 12. ISCCM has submitted that as explained in the facts of the case, it will organize in the course of event, a trade fair also. The exhibitors will be allowed to display their products at a specified location in the trade fair venue, advertise their brand and products, distribute pamphlets or brochures etc. The consideration, i.e. exhibition participation fees will be paid by the exhibitors to ISCCM. ISCCM understands that the participation fee for exhibition is charged from the exhibitors agains....

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.... of event including the following: I. Services by hotel including accommodation, conference venue and food & beverages; II. Supply of food & beverages by outside caterers; III. Services provided by event manager like pickup & drop, exhibition stall set-up, tenting, etc. 14.1 It is submitted by ISCCM that hotel will be providing a bouquet of Services to the tourist like accommodation for the delegates, availability of conference hall and Food & beverages. The above bundle of services shall qualify as a composite supply by the hotel where accommodation service shall be the principal supply. Input Tax Credit of CGST and SGST charged by the hotel on the composite supply of accommodation service shall be available to ISCCM since such supply will be used in course of business and it is an eligible credit in terms of Section 16 of CGST Act, 2017. 15. ISCCM submit that in relation to input tax credit on food and beverages supplied by outside caterers, Section 17 (5) provides that ITC of tax paid on food and beverages shall be available to them because ISCCM will use such inward supply as an element of an outward supply of event organization which is a taxab....

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....ence to be held in February 21. When inquired regarding this, during personal hearing, Shri Hetang Pandya clarified that the said conference is slated for April 2022. 22. ISCCM supply to delegates i. As per the brochure submitted, this Conference is for researchers, professors and doctors on topics of intensive care and the workshops will be revisiting the clinical practices, new technologies and drugs as well as the current initiatives to deal with pandemic and post pandemic scenario of critical care. The conference to be attended by physicians and Intensivist features the following workshops: (i) Comprehensive Critical Care Course (ii) CAM-ICU: Comprehensive Airway Management in ICU (iii) Intensive Care Ultrasound (iv) Essentials and Fundamentals of Mechanical Ventilation (v) Essentials and Fundamentals of Mechanical Ventilation (vi) Advanced Neuro Trauma & Critical care Support (vii) Multiorgan (Extra Corporeal) Support & Therapy (viii) Mechanical & Extracorporeal Cardiac Support & Therapy (ix) Critical Communication & Soft Science (x) Research & Statistical Methodology ....

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.... ii. ISCCM supplies Sponsorship services to its respective customers which finds entry at SAC 998397 under the category of 'Sponsorship services and brand promotion services'. We note that with regard to sponsorship service GST liability is on Reverse Charge Mechanism on the service recipient when the recipient is located in the taxable territory, vide Notification 13/2017- CT(R) dated 28-6-17. We find the supply in this regard to be Sponsorship service supply and dismiss ISCCM's submission that this supply is brand promotion supply. 25. Admissibility of ITC by ISCCM i. We find it relevant to quote the illustration quoted in CBIC Flyer no 4 dated 5-8-2019, as follows: 'Illustrations - i. A hotel provides a 4-D/3-N package with the facility of breakfast. This is a natural bundling of services in the ordinary course of business. The service of hotel accommodation gives the bundle the essential character and would, therefore, be treated as service of providing hotel accommodation. ii A 5 star hotel is booked for a conference of 100 delegates on a lump sum package with the following facilities:' Accommodation for the delegates Breakfa....