The ARA, Rajasthan has pronounced Ruling on 15.12.2021, in the case of Vakao Theme Park LLP (2022) 37 J.K.Jain’s GST & VR 121, holding that;
‘The services provided/to be provided in the ‘Theme Park & Museum‘ by the applicant are classifiable under HSN Code 9996-item No. (vi) of col. No. 3 of entry No. 34 of the notfn No.11/2017-CT(R) dated 28.6.2017 under “Recreational, Cultural and sporting services other than (i), (ii), (ia). (ii) (iia), (iv) and (v) above” and is liable to GST @18%.’
1. Background.─ the Applicant i.e., Vakao Theme Park LLP is engaged in providing services of theme parks and intend to construct a building namely ‘Sundha Darshan Museum’ near Sunda Mata Temple situated near “Sundha Mata Temple” at Sarhad Mouja, Village-Rajpura, (Than Mataji), Tehsil-Jaswantpura, Jalore. The applicant sought clarity whether the Notfn No.12/2017-CT(R) dated 28.6.2017 is applicable in respect of said “Sundha Darshan Museum” or otherwise.
2. Findings by ARA.─Before we delve deep to decide the case, it would be proper in the fitment of justice to discuss the relevant provisions of the statute which are as under;
3.1 Explanatory Notes for Supply of Services under GST
| 99964 | Museum and preservation services |
| 999641 | Museum and preservation services of historical sites and buildings |
This service code includes:
1. display services of collections of all kinds (art, science and technology, history)
2. management and conservation services for such collections
iii. organization of travelling exhibitions for such collections
1. operation of historical sites, monuments and buildings, including access and visiting services.
2. preservation services for historical sites, monuments and buildings.
3.2 The relevant entry of the Notfn No.12/2017-CT(R) dated 28.6.2017 is as under:
| S.No. | Heading | Description of Services | Rate |
| 79 | Heading 9996 | Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo. | NIL |
3.3 According to the. International Council of Museum (ICOM) Statutes, by the 22nd General Assembly in Vienna, Austria, on 24.8.2007, the current definition is as follows:
“A museum is, a non-profit, permanent institution in the service of society and its development, open to the public, which acquires, conserves, researches, communicates and exhibits the tangible and intangible heritage of humanity and its environment for the purposes.”
4. In view of above provisions and fact submitted by the applicant, first we have to decide that said building to which the applicant claiming as ‘Sundha Darshan Museum’ is museum or otherwise so that applicability of Notfn No.12/2017-CT(R) dated 28.6.2017 can be determined.
3. Analysis & Conclusion by ARA.─The ARA relied upon the definition of museum given by the International Council of Museum (ICOM). Moreover, in the views of ARA, the museum means a non-profit organisation that stores objects of both natural and cultural heritage, cares and provides necessary conservation supports required to objects in both display and storage and exhibits objects for the knowledge of common people.
With regard to meaning of Non-Profit Organisation, the ARA are of the view that a non-profit organisation, as the name suggest is a legal organisation whose primary purpose is to promote public good rather than making profit. These are founded by a group of people who come together for a common purpose, i.e., to provide service to members and people. They are aimed at endorsing a social cause or supporting a particular outlook. These include the sports club, public hospitals, religious institutions, cooperative societies, literacy society, etc. Non-profit organisations also make the profit, but the profit earned by it is used for furthering the aim of the concern. They raise funds from subscriptions, donation, government grant, membership fee, entrance fee, legacies, and charity and so on. The non profit entities are not owned by any person, not even by the founders.
In view of fact of the case and above discussion, we find that premises claimed by the applicant as ‘museum’ is founded and developed by a LLP firm namely Vakao Theme parks LLP which is a business entity. The Main Business Activity of Vakao Theme Park LLP is Recreational, cultural and sporting activities. Further, as per discussion held with its authorized representative during personal hearing dated 30.11.2021, it emerges that this firm intend to develop amusement parks near sunda mata temple. The creation of “Sundha Darshan Museum” is one of the way with a motto to increase people footfall in order to run these amusement/theme parks. This building is owned Theme Park LLP is Recreational, cultural and sporting activities by its partners which shows that it is not a non-profit entity. The primary purpose of the said premises is making profit rather than to serve society or public at large. Being a partnership firm, the applicant has a motto to develop the nearby area of Sundha mata temple for earning profit by developing ‘Sunha Darshan Museum’ and amusement parks. Mere placing some new idols & sculptures in the said ‘Sunha Darshan Museum’ to exhibit story of sundha mata temple in the name of service to society, does not qualify as ‘museum’ due to its profit earning motto. Further, the said building neither acquires, conserves the heritage of humanity nor having collection of arts, science, and technology, history objects. Hence, we find that premises termed as “Sunha Darshan Museum is not a ‘museum’. Thus the applicant is not eligible to avail benefits of entry at S.No.79 of the Notfn No.12/2017-CT(R) dated 28.6.2017 in respect of “Services by way of admission to a museum’ The services provided/to be provided by the applicant will be classified under item No.(vi) of column No.3 of S.No.34 (heading 9996) of the notfn No.11/2017-CT(R) dated 28.6.2017 under “Recreational, Cultural and sporting services other than (i), (i), (iia), (ii) (iiia), (iv) and (v) above” and the applicant is liable to pay GST 18%.
4. Ruling.─In view of the foregoing, the ARA ruled as follows:–
The premises termed as “Sunha Darshan Museum” is not a “Museum”. Thus, entry at S.No.79 of the Notfn No.12/2017-CT(R) dated 28.6.2017 is not applicable to the applicant. The services provided /to be provided by the applicant is classified under item No.(vi) of column No.3 of S.No.34 (heading 9996) of the notfn No.11/2017-CT(R) dated 28.6.2017 under “Recreational, Cultural and sporting services other than (i), (ii), (ia). (ii) (iia), (iv) and (v) above”. and the applicant is liable to pay GST@ 18% (9% CGST+9% SCGST).
CA Om Prakash Jain s/o J.K.Jain, Jaipur | Tel:9414300730
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