IGST Ans. Section 9 (4) (a) of Revised Model IGST Law provides that any service provided directly in rela

Raju Choudhary

Staff member
Ans. As per Section 9(4) (b) of the Revised Model IGST Law, the location of the hotel, inn, guesthouse, home stay, club or campsite or a houseboat or vessel, shall be the place of supply of service in relation to such accommodation service. In case, the accommodation service is provided at multiple locations situated in different States or the vessel or boat located in more than one State at a time of supply of service, then the value of the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or determined in the terms of the contract or arrangement entered. In the absence of such contract or agreement, the determination shall be on such other reasonable basis as may be prescribed.

For example, YOYO Rooms, based out of Bangalore, takes reservation for accommodation in its hotels across India from ABC airlines, based out of New Delhi, for overnight stay of its crew members. The place of accommodation services shall be the location of the hotel where the crew members stayed. In case, the agreement between YOYO rooms and ABC airlines is per night per room basis, then the value of service separately collected for each hotel shall be treated as the value of service for the respective State. In case, the agreement between YOYO rooms and ABC airlines is on a lump sum basis for a month then the place of supply shall be determined as may prescribed in the rules.