In re Srisai Luxurious Stay LLP (GST AAR Karnataka)
1. Whether the daily accommodation services ranging from Rs.300 to Rs.500 per bed are eligible for exemption under Notification No.12/2017-Central Tax?
The daily accommodation services ranging from Rs.300 to 500 per bed are eligible for exemption under Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017
2. Whether the monthly accommodation services ranging from Rs.6,900 to Rs.12,500 per bed is eligible for the exemption under Notification No.12/2017- Central Tax?
The monthly accommodation service ranging from Rs.6,900 to Rs. 12,500 per bed is eligible for exemption under Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
3. Whether the said notification would be applicable if LLP decides to charge additional charges for the extra-facilities opted by the inhabitants in addition to the facilities that are currently included in the tariff received by the inhabitants but the overall price would be less than the present exemption limit of Rs.1000 per day per Unit?
If the applicant charges additional charges for extra facilities opted by the inhabitants in addition to the facilities that are currently included in the tariff received by the inhabitants but the overall price would be less than the present exemption limit of Rs. 1,000-00 per day per unit, then the same is liable to tax at the rates applicable to them as they are independent supplies, if they donot belong to the Group 9963. If they belong to the Group 9963, then the same are exempt as per entry no. 14 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICES TAX ACT. 2017 AND UNDER SUB-SECTION (41 OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT. 2017
1. M/s Srisai Luxurious Stay LLP, No. 160, 5th Main, 4th Cross, NGEF Layout, Sanjaynagar, Bengaluru 560094, an unregistered person having PAN AEAFS6168R, has filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
2. The applicant is a Limited Liability Partnership concern not registered under the provisions of the Goods and Services Act, 2017. The applicant states that engaged in the business of developing, running, maintaining, operating, setting up, owning, dealing in, buying, selling, renting, subletting, and managing paying guest accommodations, service apartments, flats aimed to suit all type of customers by whatever name called.
3. The applicant has sought advance ruling in respect of the following questions:
i. Whether the daily accommodation services ranging from Rs.300 to Rs.500 per bed are eligible for exemption under Notification No.12/2017-Central Tax?
ii. Whether the monthly accommodation services ranging from Rs.6,900 to Rs. 12,500 per bed is eligible for the exemption under Notification No. 12/201 7- Central Tax?
iii. Whether the said notification would be applicable if LLP decides to charge additional charges for the extra-facilities opted by the inhabitants in addition to the facilities that are currently included in the tariff received by the inhabitants but the overall price would be less than the present exemption limit of Rs. 1000 per day per Unit?
4. The applicant furnishes some facts relevant to the stated activity.
a. The applicant states that they were set up as a Limited Liability Partnership under the provisions of the Limited Liability Partnership Act, 2008 in the state of Karnataka under the jurisdiction of the Registrar of Companies, Bangalore and has been allotted LLPN AQ-6204 on 20.09.2019.
b. The applicant was incorporated with two designated partners and established with the main objective to carry on, within India, the business of developing, running, maintaining, operating, setting up, owning, dealing in, buying, selling, renting, subletting, and managing paying guest accommodations, service apartments, flats aimed to suit all type of customers by whatever name called.
c. The LLP has been specifically focused on provision of Boarding and Lodging facilities both on monthly and daily tariffs for inhabitants and also ancillary services to the above only to the inhabitants as states below
a) Meals which includes breakfast, lunch and dinner
b) Fully furnished rooms
c) Round the clock security guards at the premises
d) Housekeeping facilities
e) Washing Machine facilities
f) Television in each room
g) Internet facilities (WIFI available)
h) Vehicle parking facilities
d. All the above mentioned facilities are included in the tariffs that they charge from the inhabitants and the tariff rates are as below:
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