Accommodation services provided to SEZ units are to be treated as 'zero rated supplies': AAR
[Carnation Hotels (P.) Ltd., In re [2019] 110 taxmann.com 196 (AAR - Karnataka)]
The applicant having its registered office in New Delhi is proposing to operate hotels and rent out the rooms to the employees of SEZ units. It has sought an Advance Ruling to determine whether the
accommodation services rendered by the applicant to SEZ units can be treated as 'zero rated supplies' under GST?
Supply of goods or services or both to a SEZ Developer or SEZ Unit are treated as 'Zero Rated Supplies' under GST. Such supplies of goods or services or both shall be treated as supplies to SEZ developer/SEZ unit only when those are used towards authorized operations. If the hotel or accommodation services are received by SEZ developer or SEZ unit for authorized operations, as endorsed by the specified officer of the zone, the benefit of zero rated supply shall be available to the supplier. Therefore, accommodation services supplied by the applicant to SEZ units are to be treated as 'zero rated supplies' under GST.
[Carnation Hotels (P.) Ltd., In re [2019] 110 taxmann.com 196 (AAR - Karnataka)]
The applicant having its registered office in New Delhi is proposing to operate hotels and rent out the rooms to the employees of SEZ units. It has sought an Advance Ruling to determine whether the
accommodation services rendered by the applicant to SEZ units can be treated as 'zero rated supplies' under GST?
Supply of goods or services or both to a SEZ Developer or SEZ Unit are treated as 'Zero Rated Supplies' under GST. Such supplies of goods or services or both shall be treated as supplies to SEZ developer/SEZ unit only when those are used towards authorized operations. If the hotel or accommodation services are received by SEZ developer or SEZ unit for authorized operations, as endorsed by the specified officer of the zone, the benefit of zero rated supply shall be available to the supplier. Therefore, accommodation services supplied by the applicant to SEZ units are to be treated as 'zero rated supplies' under GST.
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