ANCILLARY TOURISM SERVICES BY CROWN TOURS TAXABLE AT 18% UNDER HEADING 9885(iii) AS SUPPORT SERVICES

ANCILLARY TOURISM SERVICES BY CROWN TOURS TAXABLE AT 18% UNDER HEADING 9885(iii) AS SUPPORT SERVICES

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title-M/s Crown Tours and Travels

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/25

Date of Judgment/Order- 26th November 2019

IMPORTANT PARAGRAPHS

Para No. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT

(a) Whether the ‘Ancillary Services’ provided to various tour operators falls under Chapter heading 9985 (i) (Supply of Tour Operator Service) or 9985 (iii) {Support Services)?

(b) What is the applicable tax rate for ancillary services provided to various tour operators?

Para No. 4.  COMMENTS OF THE JURISDICTIONAL OFFICER

The jurisdictional officer (STO, State Tax, Ward-II, Circle- B, Jaipur Zone-III, Zonal Kar Bhawan, Jhalana Doongri, Jaipur, Rajasthan 302004) has submitted his comments vide letter dated 22.10.2019 which can be summarized as under:

The Services supplied to tour operators falls under SAC heading 9985(ii) (Support Services) other than Heading 9985(i) and applicable rate of GST is 18%.

RULING

(a) The ‘Ancillary Services’ provided by the applicant to various tour operators falls under Chapter heading 9985 (iii) (Support Services) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 (as amended).

(b) The applicable rate of GST for ancillary services provided by the applicant to various tour operators is 18% (SGST 9% + CGST 9%).