" BEFORE THE APPELLATE AUTHORITY FOR ADVANCE RULINGS FOR THE STATE OF UTTARAKHAND GOODS & SERVICE TAX, E-BLOCK, NEHRU COLONY, VEHRADUN-248001 PRESENT: Shri P.k. Goel (CGST Member) Dr. Ahmed Iqbal (SGST Member) The. Ie” day of March, 2022 Appeal No. UKGSTARA02/02/12.12.21/2021-22 a a sae CEE rae SSE pepe i. [Name and Address of M/S Corbet N lature Reserve, Ramnagar |. | Anplicant Nainital. | = | 1 «Ae A 8 re ee 1 (GET SU tae ea ie Es | App eat No/Date 1 4 7, rea xi _—_—_ Authority, Dehradun | Uttarakhancé A¢vance Ruling Commissioner State Tax Office, —— Te A ne sey AD Tf Re URGSTARA02/02 2/13. 12, 21/2021-22 a] Pee ee ere els bre ae oe 5. [Det te 9 f Personal hearing nalhearing _ Tos. 05-01-2022 _ | 6. | Concerned Of i ‘Smt Preeti Ma Manra al, Deputy Commissioner State Tax, Department,Dehradun COST- Romge 0 , ce | SGST- AC Ramnagar ere mere ata meee se 3 7, | Jurisdictional Officer 5a ees, oa aa er b S. | “Applicant Nepresented by | Date of Reg. of Appeal be eee Bio Mr.Pawan Kumar Nath (C/A) (Proceedings under Section 101 of Central Goods & Service Tax Act, 2017 and Uttarakhand Goods & Sefvice Tax Act, 2017 in the matter of M/s Corbett Nature Reserves, Ramnagar, Nainital Uttrakhand) CEL) PSR aA res OR Ss EE SEPA a, etree ey Seti RIES” oe Oe” og ER mete oy ire em eae cat per DAI ig toa ARE one Bee oe pee ee AEE RE CH OCOUOT UU OL THe Central (jo0Ggs & Service Tax Act, 2017 end Uttarakhand Goods & Service Tax Act, 2017 (in short the CGST Act and UKGST Act) by M/s Corbett Nature Reserves, Ramnagar, Nainital Uttrakhand (herein after referred to as ‘Applicant’) against the Advance Ruling Order 05/2021-22 dated 08-10-2021 passed by Authority of Acvance Ruline-of Uittarakinand tno apn licaton inode he thar — At the outset, we would like to make it clear that the provisions of the CGST Act and UKGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to CGST Act would also mean a reference to the same provisions under the UKGST A ct Brief facts of the case i: The applicant is registered with the GSTIN_ having Registration No.05AAGFC3157J1ZJ and seek advance ruling on the following question: “Whether “The Centre” of the applicant is eligible to cet the benefit of entry Sa ee en | a No.74 of exemption Notification No.} 2/2017- Chutcal Tax (Rate) dated 28.06.2017, classified under SAC Heading 9993\", ii. The applicant is running a Resort namely “Aahana- The Corbett wilderness” and also runs an independent unit namely “Aahana Naturopathy eee eee Ste Le A Centre” (alen referred th fonel Cs en P ia espe Soe) Vila ctacec on Ps SERS EERIE TEs he SO ee SL ec a Be OS ie eam Re ARON WEAR ee Ben YW CRL AN he? Ree ana eee, ee eos | ww services in the form of Nature cure (drugless cure) & Yoga therapies (Health care services), which are not restricted only to the in-house customers, but also open to all. The applicant’s unit is registered under the Clinical establishment Act. ee ili. 2010 vide reg No G°H°RM/ Fele/SFAA/ 018/2016 Dated 07/10/2016 as “Naturopathy Centre”, and that the said health care services (Naturopathy) provided by “The Centre” are exempt from the levy of GST under Notification No. 12/2017- Central Tax (Rate) under Entry 74 (SAC Heading 9993), which pertains to Services by way of health care services by a clinical establishment. an 2 ————-guthorized- medical practitiorier or para-medics. — Pee sachet a nN i (a ee iv. The Authority for Advance Ruling, Uttarakhand, after examining’ thei issues. observed that the supply of services provided by the applicant, Axhich is ~ i supply, is rightly classifiable under sub- -heading No. 99631 | as ‘Room } * Ae os Vek 9 or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like’, whereas, the exemption at Entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is applicable to services falling under the SAC 9993. Therefore, the AAR held that the applicant is not eligible to get the benefit of Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28- 6-2017. V. Being aggrieved with the said Ruling, the applicant has filed the present appeal before AAAR and the appeal is registered as Appeal No. UKGSTARA A oye: 10 PPO te OO: An eed 1 ASOT A ie ap ps ee ee Tp ae ee | ee eg ee | ee ee LN a eee eMC ERRER RRL Otek Ma kenee provided by “the Centre” under SAC 9993 in as much as, the said centre viz “Aahana Naturopathy Centre’ provides healthcare services which attract nil rate of tax in terms of entry no. 74 of exemption notification no. 12/2017-Central Tax (Rate), dated 28- 6-2017. Personal Hearing In the instant case, the personal hearing was fixed on 05-01-2022 and it was attended by Shri Pavan Kumar Nath, Chartered Accountant on behalf of the applicant, who reiterated the submissions made in the memorandum of Appeal. Me Preeti Manral TNIATA Penal ia ae aa ee ease a a es ce ek eee oa Tif a ea as SS ANA i OS ia i ae aaa i ae ali aa tae rate a ts al de et eal Mee et ea i i we US HF GC c i Be 8 os Ut plesant during the hearing proceedings, She presented her facts and requested the authority to decide the appeal on merits Discussion & Findings {oN OSSERE: SEs PRN Diets Care arr, Cr eee Geer GME mar etiam). Roum Mere 1 1 Pt . ee ic UT Ss Saree As = eS) Gee ME Mie dette Placed On record, tine Nuling. oF AAK, Memorandum of Appeal along with grounds of Appeal and submissions made at the time of personal hearing. Now we proceed as under: i, The moot issue to be decided is whether “The Centre” of the applicant is eligible to get the benefit of entry No.74 of exemption Notification No.12/2017- Central 1ax (inate) dated 26.00.2017, classified under SAC Heading 9993\", ii. The applicant in his appeal submitted that the health care services under question fall under entry No.74 of exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 on the grounds that: - athe “Aahana Naturopathy Centre” is an independent clinical establishment; b. the applicant has appointed an authorized medical practi Naturopathy centre. lL iii. To appreciate the law position in this regard, we reproduce the relevant portion of the Act as under: a. As per Section 2(30) of the Act ibid, “Composite Supply” means a sunplyv mes +i ew made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; a hirer: acomer Saction OOO AE tha AA kod Ob Sere tee a SES ERR es Noi Pee Pt get re Sema ae Ne Oe Lc SEER Me A Ne a A ditivIVal DUPPLy MICdalls tic supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary; c. As per Section 8 of the Act ibid, the tax liability on a a composite or a mixed supply ba ec os apm Reh re ay | rome, Te een, (eee ee Teen) ee eee ee met ee ease LO OW TE Manner, NAMeLy: (i) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (ii) a mixed supply comprising two or more supplies shall be treated as a supply of that supply which attracts the highest rate of tax. d. As per Section 7 (1) of the CGST Act, ‘Supply’ includes all forms of supply of goods or services or both such as sale, barter, transfer, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business, including activities specified under CA ts oe es hee IEE 7611) 205 Nee See So ee ene aes awn 1 ¢ EIEN BO NNIEINL GLY Mla OF aereca tO be Made without consideration. iv. On perusal of records, we find that in the instant case the applicant has advertised and marketed their accommodation service as their main service and Naturopathy as additional service. Thus, the accommodation service and other services including Naturopathy rendered during the course of said service is covered under composite service and the accommodation service constitutes the predominant element and therefore, becomes the “principal supply” and other services including Naturopathy shall form the part of that composite supply. On true and fair analysis of the aforesaid Notification, the conclusion is compelling that all services provided in relation to or in addition to accommodation service ° pipe (Sy PS) See eine col a. cc seine oe: te a Pree ee Abe FM oe EE Sep vee WO Accommodation Service in.as much asall such thie ancillary/additional activities having a proximal nexus with accom service. ML Ruling In view of the above discussion & findings, the Ruling No. 05/2021-22 dated 08.10.2021 passed by the Authority of Advance Ruling of Uttarakhand is hereby upheld. { go te 07/3/n- (P.K.GOEL) (Dr. AHMED IQBAL) CGST MEMBER SGST MEMBER I am directed to transmit herewith a certified copy of the order passed by the Appellate Authority for Advance Ruling for the State of Uttarakhand, Goods & Service Tax under Section 101 of the CGST/SGST Act 2017. f eg See ye Re saga? sent: AAAR Utt Copy To:- 7376 [ 1°: ge oe aa THRE 1. The Chief Commissioner, CGST. Meerut Zone. Meenyt Ui 4 W bo NS The Commissioner, CGST, Commissionerate Dehradun. The Conunissioner, SGST, Uttarakhand. Members of the Aavance Ruling Authority. Conearned Officer, State Tax, Dehradun. Jurisdictional Officers Appellant M/s Corbett Nature Reserve, Ramnagar. Nainital. *. Guard File. itt "