Page 195 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : ISPRAVA HOSPITALITY PVT. LTD. 121
[2019 (4) TMI 1451 = 2019 (24) G.S.T.L. 496 (A.A.R. - GST)] Hon’ble Advance Rul-
ing Authority of Chhattisgarh, while delivering judgment in relation to activity
provided by Hostel run by a Charitable Trust, held that the term ‘Per Unit’ as
provided under the Notification No. 11/2017-Central Tax (Rate) notified under
the CGST Act, means ‘per bed in the hostel room.
8. Given that in the absence of any meaning of “Per Unit” provided
under the CGST Act, and in absence of direct judicial precedent analysing the
same. It is not clear whether entire Villa as a Unit or rooms available in respec-
tive Villa shall be consider as one Unit for the service proposed to be provided in
Maharashtra.
1 3. Contention - As per the jurisdictional officer :
3.1 M/s. Isprava Hospitality India Private Limited (Applicant) are en-
gaged in the activity of giving Luxurious Villa on rent to its clients.
3.2 It is submitted that the rates mentioned under Entry No. 7 of the
Notification No. 11/2017-C.T. (Rate), dated 28-6-2017, are based on declared tar-
iff (includes charges for all amenities provided in the unit of accommodation
(given on rent for stay) like furniture, air-conditioner, refrigerators or any other
amenities, but without excluding any discount offered on the published charges
for such unit) of a unit of accommodation in Hotels including five star hotels,
Inns, Guest houses, Clubs, Campsites.
3.3 IHIPL has referred judicial precedents available in public-domain
analysing different interpretation for the term ‘Per Unit’ under un-identical
facts :
3.4 In the judgment quoted by applicant, relevant para quoted in para 3
of part 3 in essence mentions that for want of express ‘Statutory’ definition of
unit, we have to assign this expression its natural meaning keeping in mind the
content and perspective. If a keen look is given to the wording of the said notifi-
cation, the relevant portion reads “….. ‘accommodation’ in hotels including five
Star hotels, inns, guest houses, clubs, campsites or other commercial places
meant for residential ar lodging purposes having a declared tariff of a unit of ac-
commodation…..”.
3.5 Hence the ‘pattern of renting’ in relation to usage of the property
provides for ‘context’ or perspective. So its natural that in a hotel, a room consti-
tutes ‘that unit’ whereas in a hostel, a bed may constitute ‘the unit’, as tariff is
also declared accordingly. In the present case applicant themselves have men-
tioned that, rent is proposed to be offered to clients on per day basis for entire
villa which will be more than Seven thousand five hundred at any given point of
time in a year, where two different clients will not be able to book the same villa
and there will be no option of booking particular room of the villa. Interested
clients need to book the entire villa.
3.6 Hence from the above it is clear that villa per say is ‘indivisible unit’
in their business parlance, and the declared tariff is for the villa as a whole as
there remains no other possibility of booking either room or even two different
clients sharing the villa. Hence, the expression “per unit in the present case ap-
pears to be entire villa.”

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1 Paragraph number as per official text.
GST LAW TIMES  6th August 2020  195