M/s Chandmal Narayandas Consortium (AAR-RAJ) 2020 ITL (GST) 53
No. RAJ/AAR/2019-20/24 dated 24-10-2019
Facts of the case
- The applicant is a registered person under GST Act. He has got contract of integratedboperation, maintenance and management of recreation facilities and amenities within the boundary of Subhash Udhyan (Municpal Park), Ajmer from Municipal Corporation, Ajmer. The applicant is charging entry fee as authorized by Municipal Corporation for allowing entry of visitors into Subhash Udhyan. Other facilities i.e. Toy train, Pedal Boat etc. are also being provided in Subhash Udhyan on chargeable basis.
- The applicant has got an opinion that entry in Municipal Park is exempted from GST if charges are less than Rs. 250 per person. Similar exemption in his opinion is also available for ticket charges for Toy Train facility and ticket charges for Pedal Boat facility provided in Municipal Park Subhash Udhyan.
Question on which advance ruling is sought
(a) What is applicable rate of GST on entry fees collected for allowing entry into Municipal Park Subhash Udhyan?
(b) What is applicable rate of GST on ticket charges for Toy Train facility provided in Municipal Park Subhash Udhyan?
(c) What is applicable rate of GST on ticket charges for Pedal Boat facility provided in Municipal park Subhash Udhyan?
Observations of AAR
- The applicant is presently charging fee for allowingentry of visitors into Subhash Udhyan and for facilities such as Toy Train, Pedal Boat etc. on chargeable basis.
- The activity carried out by the applicant i.e. allowing entry into Subhash Udhyan and other facilities of Toy Train, Pedal Boats are in the nature of recreational and amusement activities.
- The above mentioned activities are covered under Chapter Heading 9996 (Recreational Cultural and Sporting Services) under Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 (as amended). The relevant extract of the Notification is reproduced below:-
|
Sl. No. |
Chapter, Section or Heading |
Description of Service |
Rate (per cent.) |
Condition |
|
34 |
Heading 9996 (Recreational Cultural and Sporting Services) |
(i) Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama [or planetarium]73 |
9 |
- |
|
(ii) Services by way of admission To exhibition of cinematograph films where price of admission ticket is one hundred rupees or less. |
|
|
||
|
[(iii) Services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go rounds, go- carting and ballet. |
9 - |
}74 |
||
|
[(iiia) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, casinos, race club, any sporting event such as Indian Premier League and the like. |
14 |
-}75 |
||
|
(iv) Services provided by a race club by way of totalisator or a license to bookmaker in such club. |
14 |
- |
||
|
(v) Gambling. |
14 |
- |
||
|
(vi) Recreational, cultural and sporting services other than (i), (ii), (iii), [(iiia),]76 (iv) and (v) above. |
|
- |
In view of the above, the rate of GST on entry fee, ticket charges for Toy Train facility and for Pedal Boat facility provided in Subhash Udhyan (Municipal Park)) is 18% (SGST 9%+CGST 9%)
- Further, we find that the activity carried out by the applicant is not covered under Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 (as amended) and thus contention of the applicant for exemption from GST is not correct.
Ruling of AAR
The rate of GST on fee collected for entry into Subhash Udhyan (Municipal Park), ticket charges for Toy Train facility and ticket charges for Pedal Boat facility provided in Subhash Udhyan is 18% (CGST 9% + SGST 9%)
