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Supply of services by way of providing hostel accommodation falls under Heading 9963 and taxable at 18%: AAR
👉 THE AUTHORITY FOR ADVANCE RULING UNDER GST, TAMIL NADU in the case of SRI KRISHNA INN, decided on 1-9-2023
👉 The AAR Judgment:-
✔️ Services by way of providing hostel accommodation supplied by applicant are not eligible for exemption.
✔️ An applicant is required to get themselves registered, if their aggregate turnover in a financial year exceeds twenty lakh rupees.
✔️ Supply of services by way of providing hostel accommodation falls under Heading 9963 and is taxable at 18 per cent.
✔️ Activity of supply of in-house food to inmates of hostel amounts to providing services in a composite manner; hostel accommodation services provided by applicant being principal supply and taxable at 18 per cent, composite supply of providing food in house by them would also be taxable at same rate.
✔️ No ruling is to be issued, where question put forth by applicant was related to applicability of a case law to facts of instant case as it does not fall under scope of Section 97(2) of GST Act.
Entry 12 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017.
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