Facts: Kerala Forest Development Corporation Ltd. (“the Applicant or the Service Provider”) is conducting Eco-Tourism activities in the reserve forest at various locations in Kerala with an aim to provide the guest the experience of the wild life in natural habitat and create awareness for conservation as well as protection of forest wild life. Earlier, the charges for tour package depended upon the type of accommodation chosen by customers. Now the Applicant wishes to change by offering rooms at different categories and combining it with various other activities. The Applicant would raise separate invoices for each of the services availed namely, accommodation, serving of food and beverages, trekking etc.
Issue involved: What will be the tax liability under GST for tour packages provided by the Service Provider?
Held: The Hon’ble AAR, Kerala vide its Advance Ruling No. KER/33/2019 dated March 1, 2019 stated that following circular no. 47/21/201/-GST dt. June 8 2018, the taxability of supply would had been determined on a case to case basis looking at the facts or circumstances of each case.
As per SRO No.370/2017 dtd. June 30, 2017, accommodation in hotel, inn, guest houses, club or campsites or other commercial place by meant for residential or lodging purposes having declared tariff of a unit of accommodation below Rs.1000 and above but less then Rs. 2500 per unit per day or equivalent is taxable @12% GST. If declared tariff is Rs. 2500 and above but less than Rs. 7500 per unit per day or equivalent is taxable @18% GST and the same above Rs. 7500 attracts GST @28% .
As per notification No,13/2018-Central(rate) tax dt. July 26, 2018 supply of food is taxable @5% GST without input tax credit. The Applicant is providing services of authorized guide which are rated @18% GST.
Further, where a supply involves of both goods and services and the value of such goods and services supplied are shown separately, the goods and services would be liable to tax at rate as applicable to such goods and services separately.
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