GST on services provided from hotel located in non-processing zone of SEZ to clients located in SEZ

Case name: M/s. Sapthagiri Hospitality Private Limited (GST AAR Gujarat)

Advance Ruling No: GUJ/GAAR/R/2018

  • Non-processing area is intended to provide support facilities to SEZ processing area and may include commercial and social infrastructure.
  • M/s. Sapthagiri Hospitality Private Limited has constructed a hotel in the non-processing zone of Dahez SEZ on the land allotted to it and started hospitality services therein.
  • The appellant filed an application for Advance Ruling before the Gujarat Authority for Advance Ruling and sought ruling whether
    • It would be liable to pay GST on all the services provided by it to the clients located in SEZ which inter-alia included supply of services by way of providing accommodation services, supplying food and beverages
    • Whether GST is to be paid for accommodation services provided to a visitor other than a visitor located in SEZ
  • The GAAR, vide Advance Ruling No. GUJ/GAAR/RULING/2018/14 dated 30.07.2018, ruled as follows:
    • The supplies made by M/s. Sapthagiri Hospitality Private Limited, 17-18, a SEZ Co-developer, from their hotel located in non-processing zone of Dahez Special Economic Zone to the clients located in Special Economic Zone for authorized operations will be treated as zero rated supplies under the provisions of Section 16(1) of Integrated Goods and Service Tax Act, 2017 read with Section 2(m) of SEZ Act, 2005.
    • The applicant is liable to pay GST on the services from their hotel located in non-processing zone of Dahez Special Economic Zone to the clients located outside the territory of Special Economic Zone under the provisions of Section 5(1) of Integrated Goods and Service Tax Act, 2017.

Disclaimer:"The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation."

Prepared By

Rutu M Doshi

Happy to Help you

Contact :

Ankit C Shetty

[email protected]