A RESORT SALES ROOMS,FOOD AND JUNGLE SAFARI IN PACKAGE AND APPLIES GST@ 18% A ONE INVOICE IS RAISED FOR ALL AS PACKAGE AS THE HIGHER RATE.IS IT CORRECT OR NOT.?PLEASE PROVIDE NOTIFICATION. THE SAME RESORT ON DEMAND PROVIDES ONLY JUNGLE SAFARI WITH SEPARATE INVOICE@5% AS THERE IS NO ITC AVAILABLE IN JUNGLE SAFARI ?

DURING A GST SURVEY IN HOTELS AND RESORT,THE OFFICER SAID THAT 18% GST TO BE CHARGED BUT ACCORDING US JUNGLE SAFARI SEPARATE INVOICE RAISED SHOULD BE CHARGED IN 5% (TOUR OPERATOR CASE).PLEASE REPLY US SO WE CAN PURSUE OFFICER REGARDING IT AS WE HAVE DISCUSSED WITH U REGARDING IT.ALSO PROVIDE NOTIFICATION FOR SAME..

Reply— As per ruling pronounced by AAR Gujarat in matter of Mangaldas mehta and co. limited dated 26.08.2019, it is pertinent to note that breakfast, airport pick up drop, heritage walk, charges for lunch/dinner are optional services and one may or may not choose to avail these additional services. Hence, these services cannot be said to be naturally bundled and there is no composite supply. Each service is unique, different, not inter dependent on each other and is optional.

As per above ruling, if the applicant/ Hotel collects separate prices for each service availed by the guest in the invoice issued by them, upon check out from the hotel. Hence, these services cannot be said to be naturally bundled and there is no composite supply.

GST Rate for the ‘Supply of Room or unit accommodation services by hotels' would be determined according to actual tarrif for the room. GST Rate for ‘Supply of food and beverage services by restaurants in hotel premises’ would also be determined according to tariff for the room. 

As per advance ruling pronounced by AAR Rajasthan in matter of Crown tours and travels dated 23.07.2020,  if the applicant is rendering only transportation with some ancillary services and not accommodation, therefore, rate of GST 5% will not applicable as applicable on tour operators under SAC 9985.