The Karnataka Authority of Advance Ruling (AAR) ruled that no GST payable on accommodation service provided to Apollo Med Skills.
The Applicant, Healersark Resources Private Limited is in the hospitality industry and is into the business of providing boarding, lodging facilities and such other services to M/s. Apollo Med Skills Limited (AMSL).
The applicant has sought the advance ruling on the issue of the applicable GST SAC and GST rate for the supply of service described in this application. Is it a composite supply or a mixed supply? Whether the service is exempted vide Notification No. 12/2017-CT (Rate) dated June 28, 2017.
The coram of Dr. Ravi Prasad and T.Kiran Reddy held that the applicable GST SAC for the supply of service described in this application is 9963. It is neither a composite supply nor mixed supply but two separate supplies. The accommodation service (SAC 99632) provided by the applicant to AMSL is exempted vide Notification No.12/2017-CT (Rate) dated 28-06 2017 as the declared tariff of a unit of accommodation is below one thousand rupees. But the service provided by the applicant through supply of food (SAC 99633) attracts GST at the rate of 5% as per Sl.No. 7(ii) of Notification No. 11/2017-Central Tax(Rate) dated 28.06.2017 as amended by Notification No. 13/2018-Central Tax(Rate), dated.26.07.2018.
“The applicant is also into supply of food along with accommodation but raising different invoices for each. As per Notification No. 13/2018-Central Tax(Rate), dtd.26.07.2018, “(i) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent” is taxable at 5% GST without input tax credit. The service of supply of food provided by the applicant is also covered under the above entry of the notification mentioned supra and hence attracts GST at 5%,” the AAR said.
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