Page 220 - GSTL_21st May 2020_Vol 36_Part 3

466 GST LAW TIMES [ Vol. 36
7.7 Further, the Entry No. 14 of Notification No. 12/2017-Central Tax
(Rate) is analysed and it says all services of SAC 9963 provided by such a suppli-
er having a declared tariff of less than Rs. 1000-00 per day or equivalent would
be exempt. Further since in this supply, all the supplies are made as a package
with the accommodation service being the principal sendee, the entire supply
would be treated as a composite supply of accommodation service as per Section
8 of the CGST Act, 2017. Hence, the proposed supply of services in question by
the applicant would not be liable to tax as per Entry No. 14 of the Notification
No. 12/2017-Central Tax (Rate), dated 28-6-2017 as amended from time to time.
8. Regarding the third question, it is seen that the applicant intends to
provide other services in addition to the facilities that are in addition to the com-
pulsory services provided and charge the clients for the same. Hence, it would
amount to providing of services under a separate contract and as per the facilities
provided, as these services are independent of the accommodation services pro-
vided. The applicant states that the overall charges collected including the addi-
tional services is less than Rs. 1000-00 per day per unit of accommodation. The
Entry No. 14 of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017
is verified and the description states that “Services by a hotel, inn, guest house, club,
or campsite, by whatever name called, for residential or lodging purposes, having de-
clared tariff of a unit of accommodation below one thousand rupees per day or equiva-
lent” and these services should belong to Group 9963. The Group 9963 of the Ser-
vice Accounting Codes as annexed to Notification No. 11/2017-Central Tax
(Rate) relates those services which are coming under Food, Edible preparations,
alcoholic and non-alcoholic beverages serving services, and if the additional ser-
vices provided by the applicant belong to the Group 9963, then the turnover of
these services will also be exempt as they are covered under the entry 14 of the
Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017. But those services
which are supplied independently to the clients which do not belong to the
Group 9963 are liable to tax at appropriate rates, provided that the applicant is
liable for registration.
9. In view of the foregoing, we rule as follows
RULING
(1) The daily accommodation services ranging from Rs. 300 to 500 per
bed are eligible for exemption under Notification No. 12/2017-
Central Tax (Rate), dated 28-6-2017.
(2) The monthly accommodation service ranging from Rs. 6,900 to
Rs. 12,500 per bed is eligible for exemption under Notification No.
12/2017-Central Tax (Rate), dated 28-6-2017.
(3) If the applicant charges additional charges for extra facilities opted
by the inhabitants in addition to the facilities that are currently in-
cluded in the tariff received by the inhabitants but the overall price
would be less than the present exemption limit of Rs. 1,000-00 per
day per unit, then the same is liable to tax at the rates applicable to
them as they are independent supplies, if they do not belong to the
Group 9963. If they belong to the Group 9963, then the same are ex-
empt as per Entry No. 14 of the Notification No. 12/2017-Central
Tax (Rate), dated 28-6-2017.

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