Ayurvedic Treatment Incidental to Resort Activities: Kerala HC upholds Luxury Tax Liability

The Kerala High Court recently ruled that Ayurvedic treatments provided as part of resort activities are incidental to the primary services offered by the resort. Consequently, these treatments are subject to luxury tax liability. The court observed that resorts often offer Ayurvedic treatments as part of their hospitality services, enhancing the overall experience for guests. Given this integration, the court determined that such treatments cannot be considered standalone services exempt from luxury tax. This ruling underscores the importance for businesses to assess the tax implications of ancillary services offered in conjunction with their primary operations, ensuring compliance with applicable tax laws and avoiding potential liabilities.