Case Law Details
In re M/s. 2 Win Residency Ladies Hostel (AAR Tamilnadu)
The recent ruling by the Authority for Advance Ruling (AAR) Tamilnadu on the GST implications for M/s. 2 Win Residency Ladies Hostel brings to light crucial considerations regarding hostel accommodation services and the supply of in-house food.
For Question No.1: The services by way of providing hostel accommodation supplied by the Applicant would not be eligible for exemption under Entry 12 of Exemption Notification No.12/2017-CT(Rate) dated 28.06.2017 and under the identical Notification under the TNGST Act, 2017, and also under Entry 13 of Exemption Notification No.09/2017-IT(Rate) dated 28.06.2017, as amended.
For Question No.2: The supply of services by way of providing hostel accommodation will fall under Tariff heading 9963 and is taxable 9% CGST + 9% SGST under Sl. No. 7(vi) of the Notification No. 11/2017, Central Tax (Rate), dated 28.06.2017, as amended vide Notification No. 20/2019 — Central Tax (Rate) dt 30.09.2019.
For Question No.3: The activity of supply of in-house food to the inmates of the hostel amounts to providing services in a composite manner and the hostel accommodation services provided by the Applicant, being the principal supply, which is taxable e.g. 18%, will be tax rate for the composite supply provided by them.
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