Case Law Details
In re Mody Education Foundation (GST AAR Rajasthan)
In the instant case, we find that the exemption to accommodation service is applicable in respect of a unit of accommodation where tariff is below Rs. 1000/- per day. Notification No. 11/2017-CT(Rate) as discussed above provides applicable GST rate as per declared tariff of a unit of accommodation. Further, accommodation having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent, the GST rate will be charged 12%, further accommodation having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent, the GST Rate will be charged 18%, further accommodation having declared tariff of a unit of accommodation of seven thousand five hundred rupees & above per unit per day or equivalent, the GST Rate wall be charged 28%. The applicant has stated in their application that they will charge below Rs. 1000/-per student per day, but it has not been declared by the applicant that how many Student will stay in a room, if more than one students wall stay in a room then GST rate will be chargeable, since the applicant did not make clear that how many students wall stay in a room/unit, hence considering non-clarity of tariff of a unit of accommodation, the GST rate as per notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 will be applicable to the applicant.
Further, the applicant is providing service of serving of food to students in hostel. The said service is classifiable under HSN 9963 as provided under notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 and GST rate will be applicable as per the above notification as discussed in para no. 8.
In view of the above, we find that the services supplied by the applicant is a Mixed Supply and highest rate of GST will be applicable amongst services provided by the applicant to students in hostel.
Read AAAR Order:- Unit of Accommodation is ‘Hostel Seat’ not Hostel Room – AAAR
Please become a Premium member. If you are already a Premium member, login here to access the full content.
