5% GST leviable on food supply to occupants of hostel: AAR

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.