Page 194 - GSTL_6th August 2020_Vol 39_Part 1

120 GST LAW TIMES [ Vol. 39
less a mention is specifically made to any dissimilar provisions, a reference to the
CGST Act would also mean a reference to the same provision under the MGST
Act. Further to the earlier, henceforth for the purposes of this Advance Ruling,
the expression ‘GST Act’ would mean CGST Act and MGST Act.
2. Facts and contention - As per the applicant
The submissions made by the applicant is as under :-
2.1 M/s. ISPRAVA Hospitality Pvt. Ltd. (Applicant) is engaged in the
activity of giving Luxurious Villa on rent to its clients in Goa and Tamil Nadu
and intending to initiate the said business in Maharashtra. Each Villa consists of
two to six rooms and is offered to clients on per day basis for entire Villa.
2.2 The per day rent of an entire villa will be more than seven thousand
five hundred at any given point of time in a year. However, if one may calculate
the cost per room per villa then at any given point of time, it would be less than
seven thousand five hundred.
2.3 Two different clients will not be able to book the same Villa for the
same day and time and there will be no option of booking particular rooms of
the Villa, interested clients need to book entire villa.
1 4. As per Notification No. 11/2017-C.T. (Rate), dated 28-6-2017, as
amended from time to time, service provided by applicant falls within the ambit
of HSN Code 9963 which appears under Entry No. 7 of the said notification.
5. In the aforesaid notification, supply value of Per Unit of accommoda-
tion decides the rate for levy of GST. If the supply value per unit of hotel ac-
commodation is between one thousand and seven thousand five hundred rupees
then GST at the rate of 12% [6% (CGST) and 6% (SGST)] is applicable and if the
supply value of per unit of accommodation is more than seven thousand five
hundred value, then GST at the rate of 18% [9% (CGST) and 9% (SGST)] is appli-
cable.
6. Since rate per unit of hotel accommodation plays vital role on deter-
mining the rate applicable, it is pertinent to know the meaning of the term ‘Per
Unit’, since the said term is not defined under the CGST Act, 2017. Applicant
would like to understand whether the either entire Villa shall be considered as
one unit or each room available in the Villa shall be consider as one unit.
7. Applicant states that judicial forums has interpreted different mean-
ing to the term ‘Per Unit’ considering the context in which the term is used in the
law and understanding the intention of the legislature.
7.1 In the case of The Travel & Tourism Association of GOA, Mandovi Ho-
tels Pvt. Ltd., Fomento Resorts and Hotels Ltd, Averina International Resorts Ltd., v.
Union of India. The Commissioner of Income Tax, Panaji GOA [2019 (9) TMI 102],
Hon’ble Bombay High Court while pronouncing the case for dispute under Ex-
penditure Tax Act, 1987 held that the term ‘any unit of residential accommoda-
tion’ referred under the said Act, refers to ‘hotel room’ and per se does not sup-
port the construction that ‘a unit’ must be determined on the basis of ‘beds’ or
‘occupancy’. Further held that any such construction might amount to stretching
the expression beyond its natural meaning or even beyond setting in which it is
placed.
7.2 In case of Kamal Kishor Agarwal Ramnath Bhimsen Charitable Trust
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1 Paragraph number as per official text.
GST LAW TIMES  6th August 2020  194