Alappuzha's houseboats classifiable under passenger transport service with ITC on food, expenses – AAR Kerala

Kerala AAR holds that houseboats in Alappuzha used for overnight cruises and day trips acquired and furnished by applicant (Automobile dealer) at an all-inclusive amount and meals are provided as part of package are classifiable under SAC 996415 which includes inland water cruises that include transportation, accommodation, food and other incidental services in an all-inclusive fare; On the aspect of applicable GST rate, opines that the service is liable to 18% GST being covered under Sub-entry (vii) of Sl. No. 8 of Notification No. 11/2017- CTR dated June 28, 2017; Observes that “applicant is entitled to claim input tax credit subject to the conditions prescribed in section 16 of the CGST Act, 2017.”; Clarifies that as the supply of food and expenses incurred by applicant on refurbishing, furnishing, maintaining and repairing the vessel is used for providing taxable outward supply of passenger transport services specified in proviso to section 17(5)(b)(i) and exclusion clause of section 17(5)(aa)(i)(B) of the CGST Act, the applicant is eligible for input tax credit