In Re: M/s. Sarj Educational Centre
GST
2019 (2) TMI 1605 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (22) G. S. T. L. 315 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 26-2-2019
Case Number 42 of 2018 Order No. 42/WBAAR/2018-19
GST
SHRI SYDNEY D'SILVA, SHRI PARTHASARATHI DEY, MEMBER
Applicant's representative heard Sumit Nandy, ACA Aloke Kumar Ghosh, Advocate
Preamble
A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called 'the GST Act'), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act.
Every such Appeal shall b
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n 97(2)(a) & (b) of the GST Act.
1.3 The Applicant states that the question raised in the Application has neither been decided by nor is pending before any authority under any provision of the GST Act.
1.4 The officer concerned from the Revenue has raised no objection to the admission of the Application.
1.5 The Application is, therefore, admitted.
2. Submissions of the Applicant
2.1. The Applicant, according to the Written Submission made at the time of Hearing, has entered into an MOU with St. Michael's School under the management of Sunshine Educational Society, for providing boarding facility exclusively to the students of the said school. The boarding facility shall include lodging, housekeeping, laundry, medical assistance and food. The consideration is a consolidated charge on the individual boarder for the combination of the services.
2.2. The Applicant refers to Circular No. 32/06/2018 dated 12/02/2018 of CBIC. It has clarified that accommodation service to students in a
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notification. The Applicant is not an educational institution within the meaning of the above clause. Although the services are provided in terms of an MOU with St Michael's School, the Applicant charges the consideration on the individual students. Being liable to pay the consideration, such students are, therefore recipients of the Applicant's services and not the educational institution. Sl. No. 66 of the Exemption Notification is, therefore, not applicable.
4.2. The Applicant provides services to both day boarders and boarders requiring lodging facilities. In FY 2018-19, the annual consideration for the services without lodging facilities are segregated and charged on the day boarders at Rs. 71,800/- per head, of which Rs. 66,000/- is boarding fees. The boarding fees for those who enjoy lodging facilities is Rs. 1,56,000/- per head. These lodgers have to pay an additional amount of Rs. 13,600/- per head for housekeeping and laundry services, whereas the day boarders pay only Rs.
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CT (Rate) dated 28/06/2017 (hereinafter the Rate Notification), as amended from time to time. Housekeeping, including maintenance, is classifiable under SAC 9987 and taxable at 18% rate under Sl No. 25(ii) of the Rate Notification. Laundry service is classifiable under SAC 9997 and taxable at 18% rate under Sl. No. 35 of the Rate Notification.
4.5. The bundle of services offered to the recipients, therefore, consists of both taxable and nontaxable supplies. It is also evident that although the services are offered in a bundle, they are not indivisible, and different considerations are paid for different packages of such services offered to the recipients, depending upon their requirement for lodging facility. For example, laundry service is not offered to the day boarders. These are not, therefore, bundles of taxable supplies that are inseparable and supplied only in conjunction with one another in ordinary course of business. The services the Applicant supplies are not, therefore, co
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