GST Amendment Widening Scope of Taxability of short-term Accommodation Services have no Retrospective Effect at Time of Ruling: AAAR directs to Consider Application afresh [Read Order]

The Rajasthan Appellate Authority for Advance Ruling (AAAR) has directed the Authority for Advance Ruling (AAR) to reconsider its ruling regarding the taxation of services provided by M/S Umed Club. The AAR had initially ruled that GST is payable on short-term accommodation, restaurant, and recreational services provided by the club to its members, based on a retrospective amendment in the CGST Act, 2017. \r

However, the AAAR noted that this amendment was not operational at the time the ruling was made. Consequently, the AAAR set aside the initial ruling and remanded the case back to the AAR for a de-novo decision, instructing them to consider all the appellant’s contentions.