TaxTMI 
TaxTMI 
2022 (6) TMI 697
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....n Foundation, NH-11, Laxmangarh, Distt. Sikar (Rajasthan) -332311 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a),(b), (c) & (e) given as under: - (a) Classification of any Goods or Service or Both (b) Applicability of a Notification issued under the Provisions of this Act: (c) Determination of the time and value of supply of goods or services or both: (e) Determination of the Liability to pay tax on any goods or services or both. Further, the applicant being a registered person (GSTIN is 08AABTM0215E1Z5 as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. A. SUBMISSION OF THE APPLICANT:(in brief) * That Mody Education Foundation (MEF), having its registered office at Kanchanjungha (7th Floor), 18- Barakhambha Road, New Delhi- 110001 (herein after referred as applicant) is Society registered under Societies Registration Act. 1860 with Registration No. S-10560/1986 (date of....
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....dation Charges' shall be based on the type of 'Hostel Seat' opted by the student of MUST. Following FOUR categories of Hostel Seats are being offered by MEF for the students of MUST:- i) Hostel Seat in a Single Occupancy A.C. Room; ii) Hostel Seat in a Single Occupancy Non A.C. Room iii) Hostel Seat in a Double Occupancy A. C. Room; iv) Hostel Seat in a Double Occupancy Non A. C. Room; * That the amount to be charged by MEF from the students of MUST for Hostel Accommodation Charges shall be based on per 'Hostel Seat', which shall be less than Rs. 1000/- per day. The Hostel Accommodation Charges shall be collected for the entire year either as one-time payment or in Installments. * Earlier Application for Advance Ruling & its Result:- i) That MEF has earlier applied before the Rajasthan Authority for Advance Ruling (AAR) vide ARN No. AD0810200100823 dated 30/10/2020 to seek an Advance Ruling in respect of the following matter:- "Whether Hostel facility which includes Lodging and Boarding service provided by MEF to the students of MUST having value of service upto Rs 1000/- per day would be eligible for exemp....
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....d within the definition of Charitable Activities and thus, exempt under Sl.No. 1 of notification No. 12/2017-C.T.(Rate)? Hostel accommodation services do not fall within the ambit of charitable activities as defined in para 2 (r) of notification No. 12/2017-C.T. (Rate). However, services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent are exempt. Thus, accommodation service in hostels including by Trusts having declared tariff below one thousand rupees per day is exempt. [SI. No. 14 of notification No. 12/2017-C.T. (Rate) refers] Thus, an analysis of the above clarification by the CBIC, makes the Hostel Accommodation Service at par with the "Service by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purpose" which falls under Service Accounting Code (SAC) - 9963. 2. Applicability of Notification No. 12/2017-CT (Rate) and Tax Liability on Hostel Accommodation Service The clarification given by CB1C at S. No. 1 of Circular No. 32/06/2018-GST dated 12-2-2018 (Refer....
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....9; shall only be the Unit of Accommodation, in para 8.7 of the aforesaid order, noted below for ready reference:- 8.7 Further the appellant has contested that in this case, the Unit of Accommodation is a 'Hostel Seat'. Per unit of accommodation has not been defined in GST anywhere. There is many ways to fix the tariff in the business of accommodation service. Authority for Advance Ruling has considered room as the unit of accommodation. In this regard we have contrary view as legislature has used the term 'per unit of accommodation' instead of other criteria. The word 'per unit of accommodation' should be understood as per general practice adopted by large number of service provider in similar business model. In hotels, generally it fixes per room, per suit whereas in hostels, -inns and dharmshalas, it fixes per room, per bed, per seat and per person. From the facts mentioned by the appellant, it would emerge that they provides accommodation service in hostel and fix the tariff on the basis of hostel seat, therefore, we agreed the contention of appellant and finds that hostel seat should be considered as a unit of accommodation. Thus, by the aforesaid ....
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....No. 12/2017-C.T. (Rate). However, services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent are exempt. Thus, accommodation service in hostels including by Trusts having declared tariff below one thousand rupees per day is exempt.. [SI. No. notification No. 12/2017-C.T. (Rate)". • Further, Rajasthan Appellate Authority for Advance Ruling, CGST, vide its order No. RAJ/AAAR/01/2021-22 dated 27.10.2021 in respect of appeal filed by M/s Mody Education Foundation, Laxmangarh, Sikar has held that the term "Unit accommodation" is "Hostel Seat". • In view of above, it appears that hostel accommodation charges per hostel seat provided by M/s Mody Education Foundation (MEF) to the student of M/s Mody University of Science and Technology (MUST) having value of service upto Rs. 1000/- per day would be eligible for exemption under Entry No. 14 of the Notification No. 12/2017-CT (R) dated 28.06.2017, with condition that this value should be in lieu accommodation facility only and should not be for mixed supply inc....
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....pellate Authority for Advance Ruling (RAAAR), the appellate authority has passed Order No. RAJ/AAAR/01/2021-22 dated 27-10-2021 confirming following position under Law: - a) Hostel Seat shall be considered as a Unit of Accommodation in case of the Appellant i.e. MEF (Refer; Para 8.7 on Page 11 of the Order); and b) Accommodation Service along with F&B shall be considered as Mixed Supply and liable to highest rate of Tax (Refer: Para 8.8 on Page 11 of the Order); 5. Based on the comments offered by the jurisdictional officer in the present case, we observe that hostel accommodation charges per hostel seat provided by M/s Mody Education Foundation (MEF) to the student of M/s Mody University of Science and Technology (MUST) having value of service upto Rs. 1000/- per day would be eligible for exemption under Entry No. 14 of the Notification No. 12/2017-CT (R) dated 28.06.2017, with condition that this value should be in lieu accommodation facility only and should not be for mixed supply including food & beverage etc. 6. As per ruling passed by the Hon'ble Rajasthan Appellate Authority for Advance Ruling (RAAAR) vide Order No. RAJ/AAAR/01/2021-22 dated 27-10....
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....supply out of whole should be a principal supply. We find that, the services supplied in the present case are single service and taxable under GST Act, 2017 and are supplied in ordinary course of business by the applicant. Hence, not falls under "composite supply". 9.3 As the above said supply is not a Composite Supply, the facts of the case can be examined in respect of Mixed Supply. Mixed Supply has been defined in Section 2(74) of GST Act, 2017 as below- (74) "mixed supply" means two or more individual supplies of goods or services, or any combination thereof made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. Illustration.- A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; In view of above, we find that essential components of a composite supply are as under- - two or more individual su....
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.... Nil 12. Moreover, the relevant portion of CBIC's Circular No. 32/06/201 8-GST dated 12thFebruary, 2018 is as 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-C.T.(Rate)? Hostel accommodation services do not fall within the ambit of charitable activities as defined in para 2 (r) of notification No. 12/2017-C.T. (Rate). However, services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent are exempt. Thus, accommodation service in hostels including by Trusts having declared tariff below one thousand rupees per day is exempt. [SI. No. 14 of notification No. 12/2017-C.T. (Rate) refers] 13. On gone through of above exemption Entry No. 14 of the Notification No. 12/2017-CT (R) Dated 28.06.2017 as well as above discussed CBIC's Circular No. 32/06/2018-GST dated 12°February, 2018, we find that the description of service is user based, meani....