TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1619
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.... would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is engaged in the hotel business through its property named Orsino Spa Resort (formerly known as Hotel Pine Tree Spa Resort) located in Darjeeling. The resort comprises 45 rooms and offers various amenities such as a spa, banquet facilities, a bar, a multi-cuisine restaurant, and a cafe. The applicant has entered into a contractual agreement with the Reserve Bank of India (RBI) on 19th March 2025 to provide continuous accommodation services for RBI officers and their families. As per the agreement, the applicant is obligated to provide a minimum of two double-....
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....r period. The agreement shall be effective from 1st April 2025 to 31st March 2026. 2.4 The applicant shall be required provide a room of such category as agreed in the agreement along with other amenities. In case, the room is uninhabitable they shall provide room of similar category having similar facilities. 2.5 The interior of the rooms in the said hotel would be tastefully done, fully furnished with all modern amenities including attached bath, Color T.V., intercom in each room, tea / coffee maker with sufficient number of tea, sugar & milk sachets in each room of the said hotel to be used by the RBI officers and their families. Check in time-12 noon, check out time-11:00am. 2.6 In consideration for the above services provided, the RBI shall pay the room tariff per day at an agreed rate. Rs. 4,32,975 is paid as advance while signing the agreement. The tariff for Premium Room shall be as: Period Offer Rate Net Rate 01/04/2025 to 31/03/2026 Rs. 10500/- plus taxes Rs. 5773/- including taxes* *GST @ 12% (CGST 6% and SGST 6%) inclusive 2.7 The RBI shall be deducting TDS under Section 194I of the Income Tax Act, 1961, in respect of the ....
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....he lessee be given exclusive possession and control over a defined portion of the property for a certain duration. Demarcation of property means "clearly marking or establishing the boundaries and limits for a piece of land or property. This process involves physically indicating the edges or lines that separate one property from another, often utilizing fences, boundary markers, or surveying methods. The primary purpose of property demarcation is to define ownership rights, mitigate disputes, and facilitate accurate property assessments and transactions." Hence, demarcation of property being let out in renting services is extremely important. However, there is no such requirement in the case of Hotel Accommodation services provided, since, in this there is no such need to define "ownership rights". In the present case, as per the terms of the contract submitted, there is no specific allotment or demarcation of any particular room or rooms out of the total 45 rooms. Instead, the agreement merely states that "any of the rooms available out of the 45 rooms shall be given for accommodation purpose only." This language clearly indicates that: * The other party does....
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....different tax treatment." 3. Submission of the Revenue 3.1 The concerned officer from the revenue has not expressed any view on the merit of the issue raised by the applicant. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorized representative of the applicant during personal hearing. 4.2 As per the statement furnished, the applicant is running a hotel business under the name "Orsino Hotels & Resorts LLP," having a property named ORSINO SPA RESORT, having erstwhile name as HOTEL PINE TREE SPA RESORT in Darjeeling. It has a capacity of 45 rooms along with additional amenities like a spa, banquet facilities, a bar, a multi-cuisine restaurant and a café. The applicant provides various services including accommodation, food and beverage services, spa services, and event hosting. The applicant has entered into a contractual agreement with the Reserve Bank of India (RBI), dated 19th March 2025 in terms of which the applicant has agreed to provide accommodation services (i.e., rooms) on a continuous basis for the officers of RBI. The agreement includes providing for 150 " Premiu....
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....ct. Usually a hotel is an establishment that provides paid lodging accommodation on a short-term basis. It is a place that has rooms in which people can stay especially when they are traveling and it may provide food, and other varied services for paying guests. The only reference to hotel in the GST Act is to be found in the provisions of 'Place of supply of services where location of supplier and recipients is in India' under Section 12 of the IGST Act, 2017. There the concept of hotel is associated with the service of lodging accommodation. Accommodation Service: Again this concept is not defined in the GST Act itself. However, as per Section 12 of the IGST Act, 2017 accommodation service has been associated among other places with hotel also. A definition, however, is forthcoming in paragraph 4 relating to Explanation in the Notification No. 11/2017-CT(Rate) dated 28.06.2017, as amended from time to time. In the said Notification, clause (xxxiv) was inserted vide Notification No. 20/2019-CT(Rate) dated 30.09.2019, wherein it is mentioned that: "Hotel accommodation" means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other comm....
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.... (a) clause (xxxv) shall be omitted; (b) for clause (xxxvi), the following clause shall be substituted, namely:- "(xxxvi) "Specified premises", for a financial year, means,- (a) a premises from where the supplier has provided in the preceding financial year, 'hotel accommodation' service having the value of supply of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent; or (b) a premises for which a registered person supplying 'hotel accommodation' service has filed a declaration, on or after the 1st of January and not later than 31st of March of the preceding financial year, declaring the said premises to be a specified premises; or (c) a premises for which a person applying for registration has filed a declaration, within fifteen days of obtaining acknowledgement for the registration application, declaring the said premises to be a specified premises;"; This amendment has brought the following changes in respect of accommodation services provided by hotels. 1. The concept of declared Tariff has been done away with from 01.04.2025 onwards. 2. As the concept of declare....
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....applicant offers American Plan (AP) and Continental Plan (CP) in addition to the room rent only plan, commonly known as European Plan (EP). In tune with the norms of the industry, the applicant provides breakfast, lunch and dinner along with accommodation in AP and continental breakfast along with accommodation in CP. The American Plan (AP) refers to a pricing model in the hotel industry where the room rate of a hotel inter alia includes all three meals: breakfast, lunch, and dinner. It is essentially an all-inclusive package that covers accommodation and meals for the duration of stay of the guests. The Continental Plan (CP) in a hotel means that the room rate includes a continental breakfast. This typically includes items like pastries, bread, fruit, coffee, and juice. The breakfast is usually served in the hotel's restaurant or at a designated breakfast area, either buffet-styled or plated. It is similar to a 'bed and breakfast' arrangement, but the breakfast is usually a lighter, continental-style meal. Generally, the guests do not receive any deduction from the room rate if they skip any of the meals in an AP (American Plan) or breakfast in a CP (Continental Plan)....
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.... levy of IGST so far as the applicant's case is concerned. Here we must refer to the relevant provisions of Section 12 of the IGST Act. The relevant portions are reproduced hereinunder: 12. (1) The provisions of this section shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India. (2) The place of supply of services, except the services specified in sub-sections (3) to (14),-- (a) made to a registered person shall be the location of such person; (b) made to any person other than a registered person shall be,-- (i) the location of the recipient where the address on record exists; and (ii) the location of the supplier of services in other cases (3) The place of supply of services,-- (a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or (b)....
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....ove will attract TDS under section 194I(b). There seems to be nothing unusual that the RBI will deduct TDS under this section while making payment to the applicant. The applicant has tried to distinguish between the service of renting of immovable property and hotel accommodation service. He has put forward the argument that for the purpose of renting demarcation of property is vital. The clearly demarcated portion of a property is rented. But as per agreement there is no demarcated room to be provided to the RBI. Any two 'Premium Room' are to be provided to the RBI whenever there is such requirement. In other words, the lessor (here RBI) has no exclusive right to any specific part of the applicant's property. On the other hand, Notification No. 11/2017 Central Tax (Rate) Dated 28.06.2017 has defined 'Hotel accommodation' as supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation. For the purpose of GST the two services i.e. hotel accommodation service and renting service are covered by two different entries. T....