5% GST leviable on food supply to occupants of hostel: AAR
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 10 May, 2022
Latest from Taxmann
Case Details: Authority for Advance Rulings, Karnataka Healersark Resources (P.) Ltd., In re - [2022] 137 taxmann.com 439 (AAR - KARNATAKA)
Judiciary and Counsel Details
-
- DR. M.P. Rave Prasad & T. Kiran Reddy, Member
- Manoj Kumar, Manager for the Applicant.
Facts of the Case
The applicant was providing boarding and lodging services in hostel along with food and other amenities. It was raising two separate invoices, one towards hostel rent and other towards food supplied in hostel rooms. It filed an application for advance ruling to determine taxability of service of supply of food provided by it in hostel.
AAR Held
The Authority for Advance Ruling observed that the applicant was raising two separate invoices, one towards hostel rent and other towards food supplied in hostel rooms. In the instant case, the charges were defined separately for accommodation and for food and other facilities. Since there was no provision of bundled services, activities were not covered under composite supply. Moreover, the services were provided for two different prices and not for single price and such services would not be covered under mixed supply. Therefore, as per Sl.No. 7(ii) of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, the service of supply of food provided by applicant in hostel would be taxable at 5% without ITC.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
