GST- Goods And Service Tax
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Accommodation and restaurant services provided by applicant engaged in hotel business within Hotel premises, to employees and guests of SEZ units cannot be treated as supply of goods and / or services to SEZ units in State. Mentioned services constitute 'intra-State' supplies and are taxable accordingly under IGST.On reading section 16(1)(b) of IGST Act and rule 46 of CGST Rules together, it is clearly obvious that supplies of goods and / or services towards authorized operations only shall be treated as supplies to SEZ Developer / SEZ unit. Place of supply of services by way of lodging, accommodation by a hotel, shall be location of immovable property i.e. hotel as per section 12(3)(b) of IGST Act, while place of supply in case of restaurant and catering services is the location where services are actually performed in terms of section 12(4) of IGST Act.Subsequently in instant case, applicant is located outside SEZ, services rendered by it are neither part of authorized operations nor consumed inside SEZ. Hence, the supply is intra State supply.
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