Taxability on services provided by Hotel and resort such as supply of soft beverages/aerated water, whether in person or room service, supply of cigarettes by the restaurant, in person or room service, Supply of alcoholic liquor for human consumption by a restaurant, supply of free meals to the employees at a canteen located in the premises of the hotel
Rate of tax (service)— The applicant has preferred an application seeking Advance Ruling on the following questions:
1. What is the rate of tax applicable on the supply of Soft Beverages (Aerated Water) and Tobacco (Smokes) when these items are supplied independently and not as composite supply in the restaurant? In other words what is the rate of GST if these items alone are supplied and not along with food as Composite supply to the guest?
2. Whether supply of liquor is deemed to be the “exempt supply” under GST Act as per Section 2 (47) of CGST Act for the purpose of proportionate reversal of ITC as per Rule 42 of CGST rules 2017?
3. It is obligatory on the part of employer to supply free food to the employees. Whether such free supply of food is liable to reverse ITC on inputs as per Rule 42 of CGST Rules 2017?
Held that—
The supply of soft beverages/aerated water, whether in person or room service, by the restaurant located in the premises of the hotel of the applicant is taxable at the rate of 18%
2. The supply of cigarettes by the restaurant, in person or room service, is taxable at 14% CGST and 14% SGST along with the applicable GST Compensation Cess at specified rates for different kinds of cigarette products as per Notification No.1/2017-Compensation Cess (Rate) dt 28.6.2017 as amended.
3. The Supply of alcoholic liquor for human consumption by a restaurant will not be taxable under CGST Act.
4. The supply of free meals to the employees at a canteen located in the premises of the hotel of the applicant is a supply under CGST and liable to pay 18% tax.
Taxability on services provided by Hotel and resort such as supply of soft beverages/aerated water, whether in person or room service, supply of cigarettes by the restaurant, in person or room service, Supply of alcoholic liquor for human consumption by a restaurant, supply of free meals to the employees at a canteen located in the premises of the hotel
Rate of tax (service)— The applicant has preferred an application seeking Advance Ruling on the following questions:
1. What is the rate of tax applicable on the supply of Soft Beverages (Aerated Water) and Tobacco (Smokes) when these items are supplied independently and not as composite supply in the restaurant? In other words what is the rate of GST if these items alone are supplied and not along with food as Composite supply to the guest?
2. Whether supply of liquor is deemed to be the “exempt supply” under GST Act as per Section 2 (47) of CGST Act for the purpose of proportionate reversal of ITC as per Rule 42 of CGST rules 2017?
3. It is obligatory on the part of employer to supply free food to the employees. Whether such free supply of food is liable to reverse ITC on inputs as per Rule 42 of CGST Rules 2017?
Held that—
The supply of soft beverages/aerated water, whether in person or room service, by the restaurant located in the premises of the hotel of the applicant is taxable at the rate of 18%
2. The supply of cigarettes by the restaurant, in person or room service, is taxable at 14% CGST and 14% SGST along with the applicable GST Compensation Cess at specified rates for different kinds of cigarette products as per Notification No.1/2017-Compensation Cess (Rate) dt 28.6.2017 as amended.
3. The Supply of alcoholic liquor for human consumption by a restaurant will not be taxable under CGST Act.
4. The supply of free meals to the employees at a canteen located in the premises of the hotel of the applicant is a supply under CGST and liable to pay 18% tax.