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Since the accommodation service supplied to an SEZ are covered under IGST Act, the same can be treated as zero rated supplies and the invoice can be raised without charging Tax after executing LUT under section 16.

Levy of GST — The applicant is proposing to operate hotels and rent out rooms to the employees of the SEZ units. The services rendered by the hotels are entirely consumed at the premises itself. The applicant sought Advance ruling that can the services rendered by hotel in the state where hotel is located to a customer located in SEZ area be considered as interstate supply subject to levy of IGST. The Authority is of the view that the aforesaid accommodation service are covered under the IGST and the same can be treated as zero rated supplies and the invoice can be raised without charging Tax after executing LUT under section 16. — Carnation Hotels Private Limited, In Re… [2019] 16 TAXLOK.COM 082 (AAR-Karnataka)

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