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

Classification of Service 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?
In present case, the services provided by the Applicant has various activities like Elephant/ Camel ride, Boat ride, Guide services, local sightseeing, dinner/ lunch at local restaurant etc. For each such service no separate invoice is issued to the tourist and one consolidated bill is raised by the Applicant to the tour operator. The Applicant does not charge for the accommodation and transportation services as the same is not provided by the Applicant. Thus, the applicant does not satisfy the conditions for ‘tour operator’ and services provided by the applicant cannot be treated as “Tour Operator Services” in terms of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.

The services provided by the supplier are not in the nature of services provided by Tour Operator, the said supply of services cannot be classified under SAC 9985(i) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.

In view of the above discussions and provisions of law, the services provided by the applicant are not Tour Operator Service’ but Support Services classifiable under Serial No. 23 [(SAC 9985(iii)] of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and attracts GST @ 18% (SGST 9% + CGST 9%). — Crown Tours And Travels, In Re... [2019] 18 TAXLOK.COM 110 (AAR-Rajasthan)