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The services of breakfast, airport pick up & drop, extra bed, laundry, lunch/dinner and heritage walk are optional, hence, these services cannot be said to be naturally bundled and there is no composite supply

Rate of Tax — The applicant, seeking an advance ruling in respect of the following question: (i) Whether the invoice of the applicant containing items reflecting charges towards room stay, service charge, breakfast, airport pick up and drop, extra bed form a part of tariff in order to ascertain the rate of GST as per the slabs provided under Notification No.11/2017- Central Tax (Rate) i.e. what will be the liability to pay GST i.e. to say that declared tariff represents only the charges for room stay plus service charge and the customer books only hotel accommodation and the rest optional facilities are procured after checking in at the hotel ? (ii) If the answer to query no. 1 results in liability to pay GST as in tariff being lesser than ? 7,500/-, whether the applicant will be liable to pay 5% GST on restaurant services to the guest who stays at hotel as well as to any outsider who comes just to eat at the restaurant and not 18% GST in terms of Notification no. 46/2017- Central Tax (Rate)? (iii) If the applicant is charging money towards room stay, breakfast, airport pick up and drop, as well as extra bed plus meals i.e. the package covers everything and individual value is not assigned at the time of booking but when invoice is given to the customer there is a specific mention of each item and separate value assigned to each service, and the sum total exceeds ? 7,500/-, what would be the liability of GST i.e. the price offered to customer represents a package offering a bouquet of services ? (iv) If the answer to query no. 3 results in liability to pay GST as in tariff being lesser than ? 7,500/-, whether the applicant will be liable to pay 5% GST on restaurant services to the guest who stays at hotel as well as to any outsider who comes just to eat at the restaurant in terms of Notification No. 46/2017- Central Tax (Rate) and not 18% GST? (v) During the financial year, on account of low season, the tariff remains below ? 7,500/-. However in peak season, the room tariff exceed ? 7,500/-, then in this situation, whether the liability of the applicant to pay GST at 18% on restaurant arises from inception or from the day the tariff exceeds ? 7,500/- and it falls back to 5% as soon as the tariff falls below ? 7,500/- ? (vi) The applicant has certain lower category of rooms wherein the tariff at which they are sold at includes break-fast. In this scenario, what will be the liability to pay GST on room tariff and breakfast in the event the applicant is liable to pay only 5% GST on restaurant services as tariff falls below ? 7,500/- and low category rooms are sold at ? 3,400/-?. Held that— Declared or published tariff is relevant only for determination of the tax rate slab. GST Rate for the ‘Supply of Accommodation, food and beverage services' would be determined according to declared tariff for the room, and GST at the rate so determined would be levied on the entire amount charged. The rate of GST for other distinguished service provided by M/s. Mangaldas Mehta and Co. Limited (GSTIN-24AAACM4217CIZ5) shall be determined according to the respective entries of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, as amended. declared or published room tariff is relevant only for determination of the tax rate slab. In case the Restaurant situated in a hotel premises having declared room tariff of less than ? 7500/- per unit per day, M/s Mangaldas Mehta and Co. Limited (GSTIN-24AAACM4217CIZ5) will be liable to pay GST @ 5% without ITC on restaurant services to the guest who stays at hotel as well as to any outsider who comes just to eat at the restaurant. The applicant is liable to pay GST @18% on amount charged for restaurant services i.e. for breakfast to the guest under category of ‘restaurant services’. Further, the Applicant is liable to pay GST @ 18% with ITC on airport pickup and drop charges collected from guest under ‘Passenger transport services’. In case declared room tariff of less than ? 7500/- per unit per dayis liable to pay GST @ 5% without ITC on restaurant services provided to the guest who stays at hotel as well as to any outsider who comes just to eat at the restaurant. In case different room tariff is declared for different seasons or periods of the year, the tariff declared for the season in which the service is provided shall apply. GST Rate would be determined according to declared tariff for the room, and GST at the rate so determined would be levied on the amount charged for restaurant services from the guest/customer In case different tariff is declared for rooms, highest of such declared tariffs shall be the declared tariff for the purpose of levy of GST. If declared tariff of any unit of accommodation of ? 7500/- and above per unit per day or equivalent@28% on amount charged for room including breakfast (i.e. ? 3400/-) from guest. — Mangaldas Mehta And Co. Limited, In Re…[2019] 15 TAXLOK.COM 138 (AAR-Gujarat)

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