Tax alert: GST applicable on hotel, restaurant services
provided to SEZ units, says AAR
Hotel or restaurant services provided to SEZ developers
or units will not be treated as 'zero-rated' supplies
and hence will be taxable under the Goods and Services
Tax (GST) regime, the Authority for Advance Ruling (AAR)
said.
Hotel or restaurant services provided to SEZ developers
or units will not be treated as ‘zero-rated’ supplies
and hence will be taxable under the Goods and Services
Tax (GST) regime, the Authority for Advance Ruling (AAR)
has said. In an application filed before the Karnataka
bench of the AAR, the applicant had sought to clarify
whether hotel accommodation and restaurant services
provided by them, within the premises of the hotel, to
the employees and guests of SEZ units be treated as
supply of goods and services.
“The hotel accommodation and restaurant services being
provided by the applicant, within the premises of the
hotel, to the employees and guests of SEZ units, cannot
be treated as supply of goods and services to SEZ units
in Karnataka and hence they are the intra-state supply
and are taxable accordingly,” the AAR order said. |