BEFORE THE AUTHORITY FOR ADVANCE
RULINGS FOR THE STATE OF UTTARAKHAND
(Goods and Services Tax)
Present:
Shri Anurag Mishra (Member)
Shri Rameshvar Meena (Member)
In
Application No: 03/2021-22
Note:- Under Section. 100(1) of the Uttarakhand Goods and Services Tax Act, 2017. an appeal against this ruling lies before the appellate authority for advance ruling constituted under section- 99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order.
AUTHORITY FOR ADVANCE RULING
GOODS & SERVICE TAX UTTRAKHAND
PROCEEDINGS
1. This is an application under Sub-Section (1) of Section 97 of the Central Goods & Service Tax Act, 2017 and Uttarakhand State Goods 86 Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made there under filed by M/s Corbett Nature Reserve at Village- Sawaldeh, PO Semalkhaliya, Jim Corbett National Park, Ramnagar Nainital, India- 244715, a partnership firm and registered with GSTIN- 05AAGFC3157J1ZJ under the CGST Act, 2017 read with the provisions of the UGGST Act, 2017 (hereinafter referred to as 'the applicant).
2. The applicant has submitted that they are running a Resort namely "Aahana-The Corbett wilderness" and also runs an independent unit namely "Aahana Naturopathy Centre" wherein they are providing various services in the form of Nature cure (drugless cure) 8& Yoga therapies(Health care services). The health care service charges are collected from the customer according to the therapy/treatment provided, which are not restricted only to the in-house customers, but open to all. And that even the in-house customers are charged separately according to the nature of treatment provided to them. The applicant's Unit is registered under the Clinical establishment Act, 2010 vide reg No. ..................................... 018/2016 Dated 07/10/2016 as "Naturopathy Centre", and that the said health care services (Naturopathy) provided by "The Centre" is exempt from the levy of GST under Notification No. 12/2017- Central Tax (Rate) under Entry 74 (SAC Heading 9993) which pertains to Services by way of health care services by a clinical establishment, an authorized medical practitioner or para-medics.
In view of the above facts they are seeking advance ruling on the following question:-
Whether "The Centre" of the applicant is eligible to get the benefit of entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, classified under SAC Heading 9993.
3. At the outset, we would like to state that the provisions of both the CGST Act and the SGST Act are the same except for certain provisions; therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act.
4. The Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
5. As per the said subsection (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of:-
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of this Act,
(c) Determination of time and value of supply of goods or services or both,
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term.
6. Since applicant has sought advance ruling on classification of service and applicability of notifications, therefore, in terms of said Section 97(2) (e) of the Act, the application filed by the applicant has been admitted.
7. We find that the applicant is a partnership firm registered with GSTIN bearing no. 05AAGFC3157J1ZJ in Uttarakhand at Village- Sawaldeh, PO Semalkhaliya, Jim Corbett National Park, Ramnagar Nainital, India- 244715 and in their application and written submission dated 28.09.2021, the applicant submitted that:-
a. The Central Board of Indirect Taxes (CBIC) vide entry no. 74 of the Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017, has exempted care services' rendered at clinical establishments by authorized medical professionals or para-medics, from the applicability of GST.
b. As per the clause 2(zg) of the Notification No. 12/2017-Central Tax (Rate) "health care services" means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and that the applicant's services squarely fall under the Service accounting Code 9993-19 ...."Other human health Services including homeopathy, Unani, Ayurveda, naturopathy, acupuncture and the like."
c. As per clause (s) of the Notification No. 12/2017-Central Tax (Rate) "clinical establishment" has been defined as "means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases." and that the applicant's unit is registered under the Clinical establishment Act, 2010 vide reg. No. .................... 018/2016 Dated 07/10/2016 as "Naturopathy Centre".
d. The Clause (k) of the Notification No.12/2017-Central Tax (Rate) defines Authorised Medical Practitioner as - "authorized medical practitioner means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognised by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in fared9 and that the services at the Naturopathy Centre are being provided by Dr. Brij Bhusan, Bachelor of Naturopathy and Yogic Sciences (BNYS).
e. The systems of Medicine recognized in India are (i) Allopathy(ii) Ayurveda(iii) Siddha(iv) Unani(v) Homeopathy(vi) Yoga(vii) Naturopathy and as such shall fall in the category of "Health Care Services", so as to qualify for exemption from GST, at par with Allopathy based medical treatments.
f. By virtue of entry no. 77 of CBEC Notification No. 12/2017-Central Tax Rate, and CBEC, circular bearing F.No. 354/17/2018-TRU, dated 16.2.2018, the accommodation charges/room rent, retention money, food charges and fees payments being charged from in-patients, by medical institutes/clinical establishments/hospitals, providing health care services as defined under clause 2(zg) of notification No. 12/2017- CT(Rate), have been categorically exempted from the levy of GST.
g. The Naturopathy, Ayurveda & Yoga systems of medicine involve a wholesome therapeutic treatment involving lifestyle changes and Naturopathy based systems of medicine, are equally effective, responsive, natural, and wholesome systems of medicine, and are duly recognised systems of medicine in our country, at par with allopathy-based system of medicine.
h. The applicant's naturopathy centre, providing medical treatments through such duly recognized systems of medicine, through qualified and approved practitioners, shall be treated at par with the hospitals/medical institutes/clinical establishments providing allopathy based medical treatments.
i. In the applicant's centre about 123 healing therapies are being provided and that about 40 diseases are being treated, which can be accessed at the website of the applicant at http://www.aahananaturopathy.com.
j. The promotion and development of "Yoga" and "Ayurveda" has been the priority of the Union Government and the Government of Uttarakhand and that the Union government has been successful in making the United Nations declare 21 June of every year as International Yoga Day, therefore, in line with the Legislative intent and the Government's commitment to bring Yoga, Ayurveda and Naturopathy based treatments at the forefront, the Naturopathy centre of the applicant squarely falls under the health care services exempted from Goods & Service Tax.
8. Personal hearing was attended by Mr.Pavan Nath, Chartered Accountant on behalf of the applicant on 28.09.2021, wherein he reiterated the submission already made in their application. Further, a write up dated 28.09.2021 was submitted along with copies of the Registration certificate (Praroop-3) No. .............................. 018/2016 dated 07.10.2016 issued by the "Zila Registrikaran Pradhikaran, Karyalaya Mukhya Chikitsa Adhikari, Nainital" showing registration under Clinical Establishments (Registration and Regulation) Act, 2010 and Copy Certificate of Registration (Under the Karnataka ACT 9 of 1962) of Dr. Brij Bhusan Kumar issued on 18.10.2012 by the Registrar, Karnataka Ayurvedic Naturopathy Siddha Unani & Yoga Practitioner's Board, Bangalore.
Views of the Concerned Officer:
9. The brochure submitted by the applicant put emphasis on services to preserve health, promote sound sleep, reduce the ageing process and how to deal with stress naturally, how to lose weight naturally, how to increase your immunity system etc., but these services are not for diagnosis or treatment of particular ailment or injury etc., as specified in the definition of Health care services as laid down in Exemption Notification No. 12/2017. The Legislative intent is not to bring western spa and relaxing therapies under such exemption and the services provided by applicant under Aahana Naturopathy are in the form of five star luxury wellness package and deals for relaxation and general well-being, thus, does not qualify for exemption under entry No. 74 of Exemption Notification No. 12/2017- Central Tax (Rate) dated 28-06-2017.
10. This is apparent form the applicant's website http:/ /www.aahananaturopathy.com, wherein they introduce themselves as;-
"Best Wellness programs in India-Special crafted offers and deals by 5 * Luxury wellness retreat.... "For wellness, you don't need to find a special time. It can be done when you are holidaying too, Aahana naturopathy, 5 star luxury naturopathy in India offers you the unique blend of luxury holiday and wellness both at a same time.... Aahana Naturopathy Centre brings to you, a complete health package; a fusion of, Ayurveda (the ancient Indian art of healing), Nature Cure (drugless cure), Yoga (Mind Body balance), Western Spa therapies (body detox) and multitude of relaxing therapies. The therapies are provided under the guidance of our Wellness experts in a hygienic, eco-friendly and luxurious environment."
11. And that the Entry No. 74 of exemption Notification No. 12/2017- Central Tax (Rate) pertains to health care services by way of a clinical establishment, an authorized medical practitioner or para-medics. Further, Health care services, Clinical establishment, Authorised medical practitioner and Paramedics have been defined in the statue, which are reproduced hereunder:-
"Health care services" means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;
"Clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;
"Authorised medical practitioner" means a medical practitioner registered with any of the councils of the recognized system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognized system of medicines in India as per any law for the time being in force;
"Paramedics" mean health care professionals such as nursing staff, physiotherapists, technicians, lab assistants etc. Services by these professionals in a clinical establishment in the capacity of employee and not provided in independent capacity and thus consider as services by such clinical establishment.
12. The above provisions clearly specify that the exemption is for Clinical Establishments, Authorized medical practitioners and Paramedics with certain conditions. The applicant is running a resort and providing luxury category leisure-relaxation services for rejuvenation of tourists/visitors. These services cannot be said to be in the nature of health care services as defined under respective provisions of GST because the resort M/s Corbett Nature Reserves (Aahana- The Corbett wilderness) is not for the purpose of clinical establishment or diagnosis or treatment, although the "Centre" is open to all, but it's not a place where routine patients come for diagnosis or treatment or to avail health care for illness, injury... etc. and the services in question are just some value added services under the resort provided to guests and visitors.
13. The applicant cannot be said to be a clinical established by any mean and just be giving its certain services a colourful name, does not make it qualify for exemption which is available only to hospitals, nursing home, clinic, sanatorium etc. for services or facilities requiring diagnosis or treatment or care of Illness, Injury, Deformity, Abnormality, or Pregnancy, etc.
14. Hence, going by criteria as mentioned in previous paragraphs, applicant resort do not qualify to be an authorized medical practitioner or paramedics, therefore, entry No. 74 of the exemption Notification No. 12/2017- Central Tax (Rate) does not apply in applicant's case, and no exemption should be available to applicant.
Discussion & findings:
15. We have considered the issue involved, on which advance ruling is sought by the applicant, relevant facts, the applicant's interpretation of law as well as the arguments/discussions made by their representative Shri Pavan Nath at the time of personal hearing.
16. The applicant has contended that their Aahana Naturopathy Centre is a naturopathy centre duly registered under Clinical Establishments Act, 2010 engaged in providing medical treatments through healing therapies of recognized systems of medicine by a well qualified and registered medical practitioner and hence fulfills all the conditions of health care services as per the entry no. 74 of the Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017 and that the circular bearing F.No. 354/17/2018-TRU, dated 16.2.2018, has clarified that the accommodation charges/room rent, retention money, food charges and fees payments being charged from in-patients, by medical institutes/clinical establishments/hospitals, providing health care services as defined under clause 2(zg) of notification No. 12/2017-CT(Rate), are exempt from the levy of GST classified under SAC Heading 9993.
17. The applicant has sought classification of services provided by them as per the above notification in Heading 9993 (human health and social care services) which appears at Sr. No. 31 of the said notification and that as per annexure to the said notification, the specific service provided by them appears at Sr. No. 612 (subheading 9993 19) and reads as under :
18. Before proceeding further into the aspect of applicability of notification, it would be prudent to examine the way the applicant advertise and market their services/ facilities to their potential clients/ customers in their website https: / /www.aahanaresort.com /, as in today's world of social media, the content and material made available online by the owner of the business/ entity, to advertise and market itself, has a great power and potential to attract their clients/ customers to grow/increase their business and their products / services and their USP are marketed aloud to their potential customers and the content available/posted, therein is the actual nature of services offered by them. We find different packages have been offered by the applicant, in their website https://www.aahanaresort.com/special-offers.php. Further we find that the centre's website http: //www.aahananaturopathY.com/, advertise and market its services/ products and USP, in a very bold and clear manner. For clear perspective of the matter, the images of the contents available on their website are reproduced hereunder:
Marriage Anniversary Celebration Package
Celebrate At Aahana Resorts
Experiential Jim Corbett Resorts Marriage Anniversary Package
A Romantic Vacation with the Love of your life is the perfect fuel to rekindle the romance that has taken a backseat to hurried life Imagine a romantic escape where you are surrounded by nature's green canopy1 Together explore the mystic forests of Jim Corbett and conned with each other and nature with our Experiential Jim Corbett Resorts
Marriage Anniversary Package
If nature is your passion, you will he thrilled lo sec the wide range of Horn and fauna Jun Corbett has to offer Hike to hidden waterfalls in the midst of forest, enjoy a picnic by the riverside and lake a long walk in the forest hand in hand' In addition to this pamper yourself in the spa where you can indulge in both massages or beauty treatments and end your night with a pool side Candle Light Dinner under the stars
Jim Corbett Resorts Marriage Anniversary Package
Starting from: Rs. 50,000/ for a Couple for 2 nights
Special Inclusions -:-
> Stay for 2 nights in Corbett Club Room (APAI)
> Poolside Candlelit Dinner with live music
> Bottle of Wine and a Cake
> 1 Couple Massage
> 1 Buggy Ride
> Afternoon Hi-Tea served on the Poolside Deck
> All Meals in our Dhikala Restaurant
> Birdwatching and Nature Walk
The #Celebrate At Aahana Experience :-
> Bird Watching & Nature Walk with Our In-House Naturalist
> Bicycle Ride through the Village
> Milking the Cows at Our In-House Gaushala
> Organic Farming in Our Kitchen Gardens
> Live Evening Entertainment
> Evening Wildlife Documentary Session with Our In-House Naturalist
Facilities & Activities offered :-
> Air-Conditioned Luxury Accommodations with In-Room Safes & Tea I Coffee Makers
> Swimming Pool with Jacuzzi and Kids Pool
> Dedicated Kids Play Area: Slides, Swings, Trampoline
> Indoor / Outdoor Games: Board Games, Table Tennis, Basketball, Volleyball, Badminton, Cricket
Additional Activities - On Chargeable Basis:-
> Aahana Naturopathy Center & In-House Spa - Naturopathy, Ayurveda & Western Therapies
> Picnic Lunch by the River side
> Customised Day Trips to Nearby Destinations in the Hills / Lakes
> Round of Golf at the Nainital Golf Course (prior intimation required)
Working From Home? Want to Work From Aahana Package
Now that your office is where you are, why not wake up to the chirping of the birds and the never ending lushes of green!
Spread over 13 acres of sprawling greens Aahana can be your safe haven away from the city. We are committed to providing you a luxurious and personalised experience so that you can work hassle free and also indulge and experience the thrill of our wide ranging activities. Right from breakfast by the pool side, a personalised yoga session to taking a walk under the great canopy of the orangish blue evening sky. You can do it all. We also offer a plethora of activities to keep the kids engaged all day long. They can finally step out and have their share of fun
Attractions:-
> 1.2 km walking/cycling track
> Butler service
> Personalised meals
> Children's play area (A wide variety of indoor and outdoor games)
> Wi-fi facility
> Individual air-conditioners in all rooms. No centralised AC system .
> Personalised yoga sessions
Terms & Conditions:-
> Minimum stay - One week
> Butler service available when you book the 4 bedroom villa
> Personalised yoga sessions would be chargeable
Aahana Signature Golden Ager Experience
Special Tariff 2019-20 (60 YRS & ABOVE)
The Aahana Signature Senior Citizen's Experience:-
> Jeep Safari in designated Tourism Zone (45 Day Notice Reqd + ID Details, Subject to Availability)
> Individually Curated Wellness Therapy Per Person
> Day Trip to Corbett Museum & Garjia Devi Temple during stay
> Gardening Sessions with Our In-House Horticulturist
> Specially Curated & Customised Meals as per Dietary Requirements (prior intimation)
> Exclusive Crafted Kumauni Theme Dinner once during stay
> Afternoon Hi-Tea with Refreshments served on the Balcony / Patio
> All Meals Inclusive at our Dhikala Restaurant - Daily Lunch, Dinner & Breakfast
The #Celebrate At Aahana Experience:-
> Early Morning Yoga & Meditation Session
Facilities & Activities offered:-
> Air-Conditioned Luxury Accommodations with In-Room Safes & Tea / Coffee Makers
> Dedicated Kids Play Area; Slides, Swings, Trampoline
> Indoor/Outdoor Games; Board Games, Table Tennis, Basketball, Volleyball, Badminton, Cricket
> Buggy Ride - a Victorian Style Horse Driven Chariot
> Customised Day Trips to Nearby Destinations in the Hills/Lakes
> Round of Golf at the Nainital Golf Course (prior Intimation required)
Wildlife Experiences - On Chargeable Basis:-
> Exclusive Jeep Safari in Corbett Tiger Reserve - Early Morning OR Afternoon, Subject to Availability (prior Intimation required with valid photo ID copies tor permit bookings)
> Exclusive Jeep Game Drives In Corbett Landscape - Early Morning OR Afternoon
> Elephant Joyrides - Early Morning OR Afternoon (prior Intimation required)
> Wilderness Excursions - various option available for Bird Watching 4 Corbett Heritage
> Half Day/Full Day Drives
> Walks, Treks 4 Cycling Expeditions
Safari Instructions & Requirements:-
We would request for the complete ID Details as per the following timelines for all Jeep Safari requests for us to guarantee permits in the recommended zones and as per the suggestive Itinerary (If any) -
> Valid government photo ID details for Indian Nationals min 6 weeks prior to the booking date
> Valid Passport details for Foreign Nationals min 6 weeks prior to the booking date
> All the Jeep Safaris are on exclusive basis and as per the Forest Department rules & regulations
Important Note:-
> All wellness inclusions are subject to availability of time slots at our Spa, prior booking required
> All Food & Beverage customisation options require prior Intimation 4 dietary requirement information
Aahana Signature Pretty Woman Experience
Special Tariff 2019-20
The Aahana Signature Women's Only Experience:-
> 01 Full Body Beauty Indulgence Therapy Per person
> 01 Manicure OR Pedicure Session with our Beauty Therapists Per Person
> 01 Sauna & Steam Session per person during stay
> 01 Buggy Ride-Victorian Style Horse Driven Chariot
> Aahana Signature Margarita on Arrival as Welcome Drink
> 30% OFF on Cocktails & Mocktails during stay
> Exclusive Candlelit Private Poolside Dinner once during stay
> Afternoon Hi-Tea with Refreshments served on the Poolside Deck
> All Meals inclusive at our Dhlkala Restaurant - Dally Lunch, Dinner & Breakfast
The # Celebrate At Aahana Experience:-
> Dedicated Kids Play Area Slides, Swings, Trampoline
> Indoor / Outdoor Games Board Games. Table Tennis, Basketball, Volleyball, Badminton, Cricket
> Customised Day Trips to Nearby Destinations In the Hills / Lakes
> Exclusive Jeep Safaris in Corbett Tiger Reserve - Early Morning OR Afternoon. Subject to Availability (prior intimation required with valid photo ID copies for permit bookings)
> Elephant Joyrides - Early Morning OR Afternoon (prior intimation required)
> Wilderness Excursions - various options available for Bird Watching & Corbett Heritage:
> Half Day / Full Day Drives
> Walks, Treks & Cycling Expeditions
We would request for the complete ID Details as per the following timelines for all Jeep Safari requests for us to guarantee permits in the recommended zones and as per the suggestive Itinerary (if any) -
> All Food & Beverage customisation options require prior intimation 4 dietary requirement information
** The pictures and the placement of the contents copied above might appear differently from that visible in the website, due to the font and style.
19. We find different packages have been offered by the applicant, as evident from their website https://www.aahanaresort.com/ and that the therapy offered by them is strictly on a residential basis, although they have claimed it to be open to all. The details as mentioned in their website are wholesome packages offered by them as "AAHANA THE CORBETT WILDERNESS", to their guest/customers and also includes the services/activities undertaken at their "AAHANA NATUROPATHY CENTRE" other than the charges for facilities of a resort, which mainly and primarily is fooding and lodging, excursion and other leisure, fun and frolic activities etc. This is apparent from the packages advertised and marketed in their website, which is as under:
"Marriage Anniversary Celebration Package-
...In addition to this pamper yourself in the spa where you can indulge in both massages or beauty treatments,.......
Additional Activities - On Chargeable Basis:
Aahana Naturopathy Center & In-House Spa - Naturopathy, Ayurveda & Western Therapies
Working From Home Package-a personalised yoga session to............................
Attractions:
Personalised yoga sessions
Aahana Signature Golden Ager Experience Package
The Aahana Signature Women's Only Experience:
01 Full Body Beauty Indulgence Therapy Per person
......................
01 Sauna & Steam Session per person during stay
................................
The #Celebrate At Aahana Experience:
Early Morning Yoga & Meditation Session
............................
19.1 Further in their website, the brand image and the logo of the applicant appear side by side with a same address and E mail Id., which is as under:
............................................
Address: Aahana Resort, The Corbett Wilderness, Vill-Sawaldeh PO Semalkhaliya, Jim Corbet National Park, Ramnagar Nainital, India 244715, Email: experience@aahanaresort.com.
19.2 Further, we find that the applicant in their website has advertised and marketed themselves as "Best Wellness programs in India - Special crafted offers and deals by 5* Luxury wellness retreat in India...
"For wellness, you don't need to find a special time. It can be done when you are holidaying too. Aahana naturopathy, 5* luxury naturopathy in India offers you the unique blend of luxury holiday and wellness both at a same time. "
20. From the above, the true and actual picture emerges that the consideration is solely dependent on the type of room/package opted by the customer, which also include facilities at Aahana Naturopathy Center along with the charges for fooding and lodging, excursion and other leisure, fun and frolic activities etc. (illustrative but not limited). And that there is no doubt and admittedly proves that these wellness facilities/ program of naturopathy/yoga at AAHANA NATUROPATHY CENTRE are provided at five star luxury wellness retreat and the same can be availed/ utilized by the customer/ client /guest, while holidaying with AAHANA THE CORBETT WILDERNESS and the customer/ client /guest need not find special time.
This goes on to substantiate that the facilities of naturopathy at AAHANA NATUROPATHY CENTRE are not independent of the facilities at AAHANA THE CORBETT WILDERNESS, but is part and parcel of the packages offered by them to their customers/ guest, who come to the resort to relax, enjoy and to have fun and frolic etc., but not in any way for the specific purpose of treatment of any disease chronic or otherwise.
21. The above fact and the images indicates that the total consideration revolves around various factors viz. the package opted by the customer, type of room and whether single or double occupancy. This fact proves that the stay is mandatory and the charges of stay depend on the above factors. Thus, we observe that the element of accommodation becomes the primary activity in the entire package. Thus, scrutiny of the packages indicates that more than one services are being rendered by them, main component are as under:-
(i) Accommodation - The programme cannot be executed without the check-in rooms made available by the applicant. Since accommodation is being provided to the customers, the same would be covered under the head 'Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like' (sub- heading 9963 11).
(ii) Food - The programme also involves supply of food to the customers during the stay-in period and since the food and other room services are also provided along with it, the same would be covered under 'Services provided by Hotels, Inn, Guest House, Club and the like including room services, takeaway services and door delivery of food' (sub-heading 9963 32).
(iii) Therapy - Various therapies are provided to the class of persons who check-in with the type of special package, the chosen type of room etc. and under this category, human health services is also being provided by the applicant which would be covered under 'Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture and the like', (sub-heading-9993 19).
22. In the above circumstances, the issue of composite supply, as defined as per Section 2(30) of the CGST Act, 2017 comes into play, which is as under :-
"composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
23. In view of the above, we observe that the entire package consists of more than one components of supply/ services and the wholesome package would not be possible without the services of fooding and lodging etc. In other words, the packages offered by the applicant are naturally bundled and would be aptly covered under the definition of Composite Supply. Further, the principal supply would be the accommodation services since the therapy can in no way be administered without accommodation. In fact, there is no option available for the customer to avail the wellness package without opting for the accommodation inside the resort. Thus, we find that the accommodation service attains the nature of the principal supply and the other components attain the nature of ancillary services. Further it is a fact on record, which is a very important point in whole scenario, that the "Aahana Naturopathy Centre" is an unit of the applicant "The Corbett Nature Reserve" whose primary and main business activity is "running a resort with the name Aahana-The Corbett wilderness", hence admittedly the resort run by the applicant is precursor of the principal supply and all other activities/ services provided by the applicant are ancillary in nature, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, which are naturally bundled to principal supply.
24. Now, since it has been established that the above services provided by the applicant are a 'composite supply', we are required to examine the classification and tax liability on the same. For this purpose, we will be required to refer to Section 8 of the CGST Act, 2017, which reads as under :
The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: -
(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and
(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
24. 1 So, in view of Section 8(a) above, it can be seen that a composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. Therefore, in the instant case, the composite supply of services would be treated as a supply of accommodation service falling under Heading 9963 and specific Heading 9963 11 (Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like) as per Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017.
25. Further, we find that the applicant in their website has advertised that in the AAHANA NATUROPATHY CENTRE, they are providing the facilities of Ayurveda (the ancient Indian art of healing), Nature Cure (drugless cure), Yoga (Mind Body balance), Western Spa therapies (body detox) and multitude of relaxing therapies and that the therapies are provided under the guidance of Wellness experts in a hygienic, eco friendly and luxurious environment and that the time-tested holistic therapies not only guide to preserve health and cure disease but also promote sound sleep and reduce the ageing process. The web site also illustrates various packages with the name "SIGNATURE MASSAGES- PARTIAL MASSAGES, AYURVEDIC MASSAGES, NATUROPATHY MASSAGES, THERAPIES- COLON THERAPY, HYDRO THERAPY BLISS, AYURVEDA INSPIRED THERAPIES, PACK- UBTAN, BEAUTY PACKS, HERBAL BODY WRAPS, UNDER WATER MASSAGE- MINERAL BATH, HERBAL BATH, JACUZZI BATH, YOGIC KRIYA - NASAL, HYGIENE, STOMACH HYGIENE, HERBAL COLON and YOGA BATHS-SUN BATH, HERBAL MUD BATH, DETOX SAUNA BATIT.
25.1 We are of the opinion that the procedures listed and advertised therein as holistic therapies, does not cure any i) Illness ii) Injury iii) Deformity iv) Abnormality, or v) Pregnancy, etc. and is also cannot be the procedures to carry out diagnostic or investigative services of diseases, as mandated in the Notification, hence does not falls under the definition of health care services.
26. Now, we come to the question for advance ruling raised by the applicant, which reads as under :-
"Whether "The Centre" of the applicant is eligible to get the benefit of entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, classified under SAC Heading 9993?"
Ongoing through the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, Entry No. 74 of the said notification reads, as under:
(b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above.
27. From the above, it can be seen that the supply of services mentioned at Sr. No. 74 of the aforementioned Notification pertain to : (a) Services by way of - (a) health care services by a clinical establishment, an authorised medical practitioner or paramedics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. The said services, which are classified under Heading 9993, have been exempt from payment of GST.
28. However, as discussed in the foregoing paras, the supply of services provided by the applicant, which is a composite supply, has been classified under sub-heading No. 996311 under 'Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like'. The exemption at Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is applicable to services falling under the Heading 9993. However, the nature of services provided by the applicant is covered under the sub-heading 996311, as discussed above. Therefore, we conclude that the exemption available at Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28- 6-2017 is not applicable to the applicant.
29. We find that in a similar case of M/s Nimba Nature Cure Village- unit of M/s. Oswal Industries Ltd., the Gujarat Authority of Advance Ruling (AAR) vide Ruling No. GUJ/GAAR/R/25/2020 dated 02.07.2020, has held that no GST exemption is applicable to the said applicant, under Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017.
30. In view of the discussions held above, we rule as under:
RULING
The applicant M/s Corbett Nature Reserves (M/s. Aahana Naturopathy Centre) is not eligible to get the benefit of Entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017.