Levy of GST— In the instant case, the applicant is running a CBSE affiliated School from class 3rd to 12th. It is registered under GST law. It is also the Sponsoring body of Mody University of Science & Technology.
The applicant has surplus infrastructure facilities after utilization thereof for its activities including running of school. This surplus infrastructure has been let out to Mody University of Science & Technology for use.
The applicant has been charging Rent from Mody University of Science & Technology for all above buildings and paying GST @ 18% on the same.
Mody University of Science & Technology is collecting Hostel fees from its students, which includes Lodging and Boarding in the Campus and GST is not charged being exempt under Sr. No. 66 of notification no. 12/2017 CTR Dated 28-06-2017 as amended.
University’s Management is considering a proposal to discontinue use of Dining Hall facility and hostel building taken on rent as it is finding it difficult to maintain and operate them. Hence both the facilities shall be returned back to applicant.
The applicant (MEF) will charge directly from the students for the hostel facilities enjoyed by MUST Students. Charges for Hostel facility comes out less than 1000/- per day. Although charges are collected on yearly basis from the students.
Applicant (MEF) is of the opinion that the Hostel facility charges recovered from the students of MUST are not chargeable to GST. The basis of the opinion is exemption notification 12/2017 CTR dated 28-06-2017 as amended time to time.
QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
Whether Hostel facility which includes lodging and Boarding service provided by MEF to the students of must having value of service upto Rs. 1000/- per day would be eligible for exemption under entry no. 14 of the notification 12/2017 CTR Dt 28.06.2017?
The applicant has stated in their application that they will charge below Rs. 1000/-per student per day, but it has not been declared by the applicant that how many Student will stay in a room, if more than one students wall stay in a room then GST rate will be chargeable, since the applicant did not make clear that how many students wall stay in a room/unit, hence considering non-clarity of tariff of a unit of accommodation, the GST rate as per notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 will be applicable to the applicant.
The services supplied by the applicant is a Mixed Supply and highest rate of GST will be applicable amongst services provided by the applicant to students in hostel.
Held that—The applicant would not be eligible for exemption under entry no. 14 of the Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017.