Rajasthan AAR in the case of M/s. Crown Tours and Travels

Case Covered:

M/s. Crown Tours and Travels

Facts of the Case:

Crown Tours and Travels (hereinafter referred to as ‘the Applicant’) is engaged in the business of providing tour services to the tourists identified by the Main Tour Operator. In a transaction that the Applicant intents to undertake, the Applicant is going to provide local transportation services along-with services, etc. As a practice in the industry, there is a contractual understanding between the tourist and the main tour operator to provide a complete packaged tour. In turn, the main operator engages sub-tour operators such as the applicant to provide local transportation services along with one or more of the services like providing guide services, sightseeing, and elephant ride. The said services together constitute an essential part of the packaged tour.

Observations:

While going through the submissions made by the applicant, we find that the applicant is involved in the supply of local transportation service and services like elephant ride, guide services, and sightseeing to tourists engaged by various tour operators, also called in trade parlance as Main Tour Operators (hereinafter MTO). The tourists as discussed above are primarily engaged by MTO and thereafter delegated to the applicant and the likes.

The applicant has earlier also filed an advance ruling on a similar subject matter wherein this authority pronounced that the applicant is not a tour operator as per the definition and condition provided in Serial No. 23(i) of Notification No. 11/2017 -Central tax (rate) dated 28.06.2017 (as amended) vide its order number RAJ/AAR/2019-20/25 dated 26.11.2019 (hereinafter the RAAR Order).

Ruling:

In view of the foregoing, we rule as follows:-

The services provided by the applicant do not fall under the purview of Serial No. 23(i) {Chapter heading 9985} of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 (as amended) and the rate of GST 5% is not applicable.

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