In Re: M/s. Sapthagiri Hospitality Private Limited,
GST
2018 (10) TMI 449 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 91 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, GUJARAT – AAR
Dated:- 30-7-2018
GUJ/GAAR/RULING/2018/14 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2017-18/AR/32)
GST
R.B. MANKODI AND G.C. JAIN, MEMBER
Present for the applicant : Shri Druvank Parikh, CA
The applicant, M/s. Sapthagiri Hospitality Private Limited, has stated that they are in the possession of Letter of Permission No. F.2/9/2003-EPZ dated 21.08.2009 issued by the Ministry of Commerce & Industry, New Delhi in favour of them as a Co-Developer for providing infrastructure facilities to establish a Hospitality Project in non-processing zone of Dahez SEZ. Accordingly, the applicant constructed a hotel in the non-processing zone of Dahez SEZ on the land allotted to it and started hospitality services therein.
1.1 The applicant submitted that the hospitality service
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zone of Dahez Special Economic Zone whether liable to pay GST on all the services provided by it to the clients located in SEZ which inter-alia included supply of services by way of providing accommodation services, supplying food and beverages and supplying services ancillary to providing accommodation services? And
(ii) Under extreme circumstances, if the hotel is required to provide accommodation services to a visitor other than a visitor located in SEZ, whether GST is required to be paid?
2 We heard Shri. Dhruvank Parikh, Chartered Accountant, for the appellant on 07.12.2017. We have gone through the submissions made by the applicant in their application for advance ruling and made at the time of personal hearing. We have also gone through the comments on the application offered by the department vide letter FNo. IV/16-32/GST/AAR-SHPL/T/17-18 dated 02.2018.
3. Section 2(20) of the IGST Act, 2017 states that 'Special Economic Zone developer' shall have the same meaning a
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ed supply' means any of the following supply of goods or services or both namely (a) export of goods or services or both ; or (b) supply of goods or services or both to a SEZ developer or SEZ Unit. Section 2(m)(iii) of SEZ Act, 2005 defines export means supplying goods, or providing services, from one unit to another unit or developer, in the same or different special economic zone. A combined reading of Section 16(1) of IGST Act and Section 2(m)(iii) of SEZ Act indicate that supply of services made by the applicant to other units or developers of SEZ would be zero rated supply.
5. Rendering of services from SEZ to DTA does not qualify as Zero rated supply in terms of Section 16 of IGST Act, 2017. Therefore, SEZ Unit/developer making interstate supply to DTA would be liable to pay IGST under IGST Act. Therefore, supply of services by the SEZ unit or Developer from SEZ to DTA would be covered under the normal course of supply. Accordingly the applicant will be liable to pay GST at
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