Page 218 - GSTL_21st May 2020_Vol 36_Part 3

464 GST LAW TIMES [ Vol. 36
(e) The LLP is yet to commence the business. Post clarification on the
exemption of GST to their nature of business, compliance under
GST Act would be accordingly carried out.
5. Regarding the interpretation of law, the applicant states that hostel
accommodation is treated at par with accommodation of hotels, inns, guest
houses, etc., and accordingly chargeable at different GST rates based on the daily
tariff per unit. However, it is exempted vide Exemption Notification No.
12/2017-Central Tax (Rate) vide Entry 14 where services by a hotel, inn, guest-
house, club or campsite by whatever name called, for residential or lodging pur-
poses, having a declared tariff of a unit of accommodation below one thousand
rupees per day or equivalent. SAC Code 996311. The applicant states that he
needs clarification on the applicability of this entry for his nature of business.
Personal Hearing :/Proceedings held on 20-2-2020
6. Sri Ramanath Rai, Chartered Accountant and duly authorised repre-
sentative of the above concern appeared for personal hearing proceedings on
20-2-2020 before this authority and reiterated the facts.
Findings & Discussion
7. We have considered the submissions made by the applicant in their
application for advance ruling as well as the submissions made by Sri. Ramanath
Rai, Chartered Accountant and duly authorised representative of the above con-
cern appeared for the personal hearing. We have also considered the issues in-
volved, on which advance ruling is sought by the applicant, and relevant facts.
7.1 At the outset, we would like to state that the provisions of both the
CGST Act and the KGST Act are the same except for certain provisions. There-
fore, unless a mention is specifically made to such dissimilar provisions, a refer-
ence to the CGST Act would also mean a reference to the same provisions under
the KGST Act.
7.2 There is no dispute on the side of revenue or on the side of the ap-
plicant that what is going to be supplied by the applicant to his customers is a
supply of service for a consideration in the course or furtherance of business. The
applicant has only sought an advance ruling whether the supply of services pro-
vided by him is liable to tax or not under the CGST Act, 2017.
7.3 Regarding the nature of the supply proposed to be made by the ap-
plicant, it is very clear that the same are covered under the services by a hotel,
inn, guest house, club or campsite, by whatever name called, for residential or
lodging purposes. The service of the applicant is definitely not renting of resi-
dential dwelling. It is very clear that the applicant is providing accommodation
services on daily basis and monthly basis and hence is covered under the Service
Accounting code 996311 with a description “Room or unit accommodation ser-
vices provided by Hotels, Inn, Guest House, Club and the like” or Service Ac-
counting Code 996322 with a description “Room or unit accommodation services
provided by Hostels, Camps, Paying Guest and the like.”
7.4 Regarding the taxability of the said sendee proposed to be provided
by the applicant, the entries that are to be verified are
(a) Entry No. 7 of the Notification No. 11/2017-Central Tax (Rate), dat-
ed 28-6-2017 as amended, which reads as under :

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