AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 1167
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....d, Plot No. 60, Jyoti Nagar, Samrathpura, Piprali Road, Sikar-332001, Rajasthan (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (b) & (e) given as under: - (b) Applicability of a notification issued under the provisions of this act; (e) Determination of liability to pay tax on any services; Further, the applicant being a registered person (GSTIN is 08AAHCG0218N1ZI 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 admitted to pronounce advance ruling. A. SUBMISSION OF THE APPLICANT:(in brief) * M/s Gurkripa Career Education Private Limited (hereinafter referred to as "applicant") a private limited company bearing GSTIN 08AAHCG0218N1ZI in the state of Rajasthan, is engaged in imparting commercial coaching service in the field of science stream to the students inspiring to clear medical and engineering entrance examinations like NEET, JEE etc. and provides the best facilities to the students in terms of video lectures, Digital learning, online mock tests....
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....e hostel fees are not included in the training/coaching fees collected from the students. In fact, the hostel fees are not a part of any package of commercial training and coaching services rendered by the applicant. * That the separate consideration is charged for providing hostel facility to the students. The hostel provides basic residential facilities which include well-maintained residence, Light, water, etc. * That the hotel charged a lump sum consideration for all the services amount of Rs. 1,02,000/- per year per student i.e., Rs. 279/- (Approx.) per day. * The contention of the applicant is that the above services to be treated as composite supply as defined under section 2(30) of the CGST Act. Following provisions of CGST Act should be discussed hereunder. * For such supplies CGST Act specifically provides as under:- * Section-2(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; Illustration - Wh....
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.... Further since in this supply, all the supplies are made as a package with the accommodation service being the principal supply, the entire supply would be treated as a composite supply of accommodation service as per section 8 of the CGST Act, 2017. * In this regards it is submitted that primarily the students approach the Hostel facility providers for having accommodation facility and the allied facilities acts as a incentive to choose the given hostel. Here in the applicant case, no other charges are being collected from the occupants for the allied services being provided and single consideration is charged from the students against the facility of accommodation. Therefore, hostel service provided by the applicant is to be treated as "Composite Supply" as defined under Section 2(30) of the CGST Act. * That the applicant is of the understanding that services of hostel facility to the student wherein consideration charged from student much less than Rs. 1000/- per day per student, is covered by the exemption as Notified in Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 as amended time to time by the entry No. 14 of the said notification. * The Government in the in....
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....of people. such as students, workers, or travellers. The word Hostel can also be used as synonyms of Cheap Hostel, Youth Hostel, bed and breakfast, boarding house, guest house etc. Form the above definitions it can be perceived that the hostel is meant for residential and lodging purpose or can also be interpreted as guest house, inn for the purpose of staying with amnesties. Meaning of Hotel As per Oxford Learners Hotel means "a building where people stay, usually for a short time, paying for their rooms and meals." As per Cambridge dictionary Hotel means "a building where you pay to have a room to sleep in, and where you can sometimes eat meals." Meaning of Club As per Oxford Learners Club means "an organization for people who share an interest or do a sport or activity together." As per Cambridge dictionary Club means "an organization of people with a common purpose or interest, who meet regularly and take part in shared activities" Meaning of Guest House As per Oxford Learners Guest House means "a small hotel" As per Cambridge dictionary Guest House means "a small house near a larger one, where guests who are invited to the larger house can stay" Meaning of INN As p....
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....stel accommodation services do not fall within the ambit of charitable activities as defined in para 2 (r) of notification No.12/2017-CT(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. 1S1. No. 14 of notification No. 12/2017-CT(Rate) refers] * As per circular No, 32/06/2018-GST, dated 12-02-2018 issued by Ministry of Finance (Department of Revenue), Govt. of India, services by a hostel, 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. lt has further been clarified that accommodation service in hostels including by Trusts having declared tariff below one thousand rupees per day is exempt. [S. No. 14 of notification No. 12/2017 -C .T. (Rate)] * From the above said clarification, it is clear that CBEC has con....
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....e fees charged per student per day per room is much less than Rs. 1000/- per day per person. Therefore, considering the provisions of Notification Entry No. 14, and clarification given by CBIC in circular No. 32/06/2018-GST dated 12th February 2018, it is held that, the applicant's activity is satisfying the conditions of Entry Sr.no. 14 of said Notification and hence would be exempt from taxes. 5.16 It is pertinent to mention at this juncture that, the applicant in both the oral and written submissions has stated that the hostel stay for the students is optional. Further, the applicant has also mentioned that the stay in hostel being optional to the students, the hostel fees are not included in the training/coaching fees collected from the students. In fact, the hostel fees are not a part of" any package concerning commercial training and coaching services rendered by the applicant. The decision is being made in this order taking into consideration the said submissions made by the applicant. For reasons as discussed in the body of the order, the questions are answered as under: - Question 1. Whether the activity of providing the hostel on the rent to various students by ....
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....In the present case applicant submits that during the vacation period hostel is offered for residential purpose and hired for labourers of a commercial organization. We may now refer to entry Sr. No. 14 of the Notification no. 12/2017 to ascertain whether different treatment would be required for use of hostel rooms given for residential purposes and commercial purposes. S.No. Chapter, Section, Heading Group or Service Code (Tariff) Description of Services Rate (per cent) Condition 14 Heading 9963 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 er da or equivalent. NIL NIL From the scrutiny of above exemption entry, we find that the description of service is use based, meaning that if the accommodation is used for residential or lodging purpose then it is immaterial who the user is. The services provided by such hostel, for residential and lodging purposes would be covered by the scope of notification entry where the declared tariff of a unit of an accommodation is below one thousand rupees per day. Therefore, the scope of ....
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....nded from time to time." * In view of the above rulings, it is clear that, CBEC has considered both hostel and hotel are one and the same and accordingly concluded that the exemption under Sr. No. 14 of Notification No 1272017-C.T. (Rate) dated 28.06.2017 is also available to hostels in view of CBEC Circular No.32/06/2018-GST dated 12th February. 2018. * It is also pertinent to mention at this juncture that. the hostel facility provided by the applicant to students is optional. Further. the hostel fees are not included in the training/coaching, fees collected from the students. In fact. the hostel fees are not a part of any package of commercial training and coaching services rendered by the applicant. * That from the above, it is clear that applicant is providing hostel on the rent to various students where fees charged per students per day per room is much less than Rs. 1000/- per day per person. Therefore. considering the provisions of Notification No 12/2017-CT (Rate) dated 28.06.2017 Entry No. 14, and the clarification given by CBIC in circular No. 32/06/2018 dated 12th February 2018, applicant is of opinion that, his activity of providing hostel facility is satisfying the ....
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.... for coaching service but also to the students of nearby schools/educational institutions. 2. Based on the submission made by the jurisdictional officer, we observe that Applicant is running hostel in the name of 'M/s Gurkripa Career Education Hostel' for residential facilities. A separate consideration is charged for providing such hostel facility to the students and hostel fees are not part of package of commercial coaching service. 3. The applicant in their written submission stated that they wishes to charge a consolidated amount of Rs. 1,02,000/- per year i.e., Rs. 279/- (Approx.) per day per student against provision of hostel residential facilities which include well-maintained residence, Light, water, etc. 4. Further, the applicant in their written submission stated that Exemption is available for their services under Sr. No. 14 of Notification No. 12/2017-Central Tax (Rate) as amended, for 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 one thousand rupees per day or equivalent. 5. In compliance with the information/ document asked by t....
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....lly bundled; -supplied in ordinary course of business; - one of the supply out of whole should be a principal supply. 7.3 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; Further, tax liability on a mixed supply shall be determined as defined in Section 8 (b) of GST Act, 2017 which is as below- "a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax." 7.4 the relevant portion of Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 12/2017-Central Ta....