Page 199 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : MANGALDAS MEHTA AND CO. LIMITED 157
13.1 The applicant supplies the services of ‘Airport pickup and drop’ to
the guests/customers and charges amount separately for Airport pickup and
drop services from gusts, which shall be taxable under ‘Passenger transport ser-
vices’, as mentioned above. The HSC code (Tariff Group/Heading) for the supply
of the ‘Passenger transport services’ by hotel shall be 9964 12. This service account-
ing code includes Passenger transport services by motorized taxi within or be-
tween urban and suburban areas. The rate of GST for these services will be 18%
with ITC, as mentioned above.
‘Other Services’ :
14. We further find that the Notification No. 11/2017-Central Tax
(Rate), dated 28-6-2017, as amended and Notification No. 11/2017-State Tax
(Rate), dated 30-6-2017, as amended also provides rate of GST for ‘Other services’
of Heading 9997. The part of the Sr. No. 35 of the Notification No. 11/2017- Cen-
tral Tax (Rate), dated 28-6-2017, as amended, relevant for examining the present
issue, is as follows :

Sl. Chapter, Description of Service Rate Condi-
No. Section or (per tion
Heading cent.)
(1) (2) (3) (4) (5)
35 Heading Other services (washing, cleaning and 9 -
9997 dyeing services; beauty and physical
well-being services; and other miscel-
laneous services including services
nowhere else classified).

14.1 We find that the applicant also separately charges for ‘laundry ser-
vices’ and ‘heritage walk services’ from the guests/customers. These services no-
where else classified in GST Acts. The HSC code (Tariff Group/Heading) for the
supply of the ‘Other services n.e.c.’ shall be 9997 99. The rate of GST for above
services will be 18% with ITC, as mentioned above.
15. In light of the above, we rule as under :
RULING
Question-1 : Whether the invoice of the applicant containing items re-
flecting charges towards room stay, service charge, break-
fast, airport pick up and drop, extra bed form a part of tar-
iff in order to ascertain the rate of GST as per the slabs pro-
vided under Notification No. 11/2017-Central Tax (Rate)
i.e. what will be the liability to pay GST i.e. to say that de-
clared tariff represents only the charges for room stay plus
service charge and the customer books only hotel accom-
modation and the rest optional facilities are procured after
checking in at the hotel?
Answer : Declared or published tariff is relevant only for determination
of the tax rate slab. GST Rate for the ‘Supply of Accommoda-
tion, food and beverage services’ would be determined accord-
ing to declared tariff for the room, and GST at the rate so
determined would be levied on the entire amount charged.

GST LAW TIMES  7th May 2020  199