2018 (5) TMI 759 – AUTHORITY FOR ADVANCE RULING – KARNATAKA – [2018] 59 G S.T.R. 209 (AAR), 2018 (13) G. S. T. L. 114 (A. A. R. – GST), [2018] 2 GSTL (AAR) 101 (AAR) – Supply of goods & services to SEZ or not – intra-state supply – Place of Provision Rules – Whether the Hotel Accommodation & Restaurant services provided by them, within the premises of the Hotel, to the employees & guests of SEZ units, be treated as supply of goods & services to SEZ units in Karnataka or not?
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Held that: – On reading Section 16(1)(b) of IGST Act' 2017 & Rule 46 of CGST Rules 2017 together it is clearly evident that the supplies of goods or services or both towards the authorised operations only shall be treated as Supplies to SEZ Developer /SEZ Unit.
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Since place of provision of services in case of Hotel has been prescribed under the Act 'location of the Hotel' the rendition of services of restaurant, short term accommodation and Banqueting/conferencing cannot be said to have been 'imported o
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r, NASCO ISHANNYA, 27/1, Khanapur Road, Tilakwadi, Belgaum – 560 006, having GSTIN number 29AAACG9426FIZI, have filed an application, on 25.11.2017, for advance ruling under Section 97 of CGST Act, 2017, KGST-Act, 2017 & IGST Act, 2017 read with rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA 01. They also enclosed copy of challan for ₹ 5,OOO/- bearing CIN number UTIB17112900307729 dated 24.11.2017. 2. The Applicant is engaged in hotel business, having hotel "Fairfield Marriott" and provides hotel accommodation & restaurant services. They are providing services to the employees & guests of some of the units in SEZ, Belgavi, in addition to the regular customers. They are charging SGST & CGST at the applicable rates. The SEZ units contended that the services are being supplied / rendered to sez unit only and hence rate of GST is NIL as per provisions of section 16(1)(b) of IGST Act'2017. Therefore the applicant filed this instant app
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aurant services in Belgaum; that the hotel is situated outside the SEZ and also independent of SEZ; that the billing is done on SEZ company for employees of SEZ; that they have not entered into any contract with either SEZ or any unit in the SEZ; that they are not giving any concessional rate to the billings of SEZ at present; that SEZ units contended for concession; that SEZ units gave letter to the hotel to provide billing in their name whenever any of their guest / employee uses the services/ facilities and hence they filed the instant application. FINDINGS & DISCUSSION: 5. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri R.L. Barve, Chartered Accountant during the personal hearing. We also considered the issue/transaction(s) involved on which advance ruling is sought by the applicant, relevant facts of the transaction(s) involved, the applicant s understanding of rate of tax in respect of the
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017 & Rule 46 of CGST Rules 2017 together it is clearly evident that the supplies of goods or services or both towards the authorised operations only shall be treated as Supplies to SEZ Developer /SEZ Unit 9. The place of supply of the services by way of lodging accommodation by a hotel, shall be the location at which the immovable property (hotel) is located or intended to be located, as per Section 12 (3)(b) of the Integrated Goods and Services Tax Act, 2017. Also the place of supply of restaurant and catering services shall be the location where the services are actually performed, as per Section 12 (4) of the Integrated Goods and Services Tax Act, 2017. In the instant case, admittedly, the applicant is located outside the SEZ. Therefore the services rendered by the applicant are neither the part of authorised operations nor consumed inside the SEZ. 10. Since place of provision of services in case of Hotel has been prescribed under the Act 'location of the Hotel' the ren
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