Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170906-01 – Q. 1 Will GST be charged on actual tariff or declared tariff for accommodation services? Ans. Declared or published tariff is relevant only for determination of the tax rate slab. GST will be payable on the actual amount charged (transaction value). Q. 2 What will be GST rate if cost goes up (more than declared tariff) owing to additional bed. Ans. GST rate 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 from the customer. For example, if the declared tariff is ₹ 7000 per unit per day but the amount charged from the customer on account of extra bed is ₹ 8000, GST shall be charged at 18% on ₹ 8000. Q. 3 Where will the declared tariff be published? Ans. Tariff declared anywhere, say on the websites through which business is being procured or printed on tariff card or displayed at the recepti
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h June, 2017 entry 34, GST on the service of admission into casino under Heading 9996 (Recreational, cultural and sporting services) has been levied @ 28%. Since the Value of supply rule has not specified the method of determining taxable amount in casino, Casino Operators have been informed to collect 28% GST on gross amount collected as admission charge or entry fee. The method of levy adopted needs to be clarified. Ans. Relevant part of entry 34 of the said CGST notification reads as under: Heading 9996 (Recreational, cultural and sporting services) – … (iii) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as Indian Premier League and the like. – 14% (iv)… (v) Gambling. – 14 % As is evident from the notification, entry to casinos and gambling are two different services
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9 Whether for the purpose of entries at Sl. Nos. 34(ii) [admission to cinema] and 7(ii)(vi)(viii) [Accommodation in hotels, inns, etc.], of Notification No. 11/2017-C.T. (Rate), dated 28th June, 2017, price/declared tariff includes the tax component or not? Ans. Price/declared tariff does not include taxes. Q. 10 Whether rent on rooms provided to in-patients is exempted? If liable to tax, please mention the entry of CGST Notification No. 11/2017-C.T. (Rate) Ans. Room rent in hospitals is exempt Q. 11 What will be the rate of tax for bakery items supplied where eating place is attached – manufacturer for the purpose of composition levy? Ans. Any service by way of serving of food or drinks including by a bakery qualifies under section 10(1)(b) of CGST Act and hence GST rate of composition levy for the same would be 5% Q. 12 Whether homestays providing accommodation through an Electronic Commerce Operator, below threshold limit are exempt from taking registration? Ans. Notification No. 17
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foreign publisher for publishing Indian edition (same language) of foreign books. [e.g. Penguin (India) Ltd. pays fees to Routledge (London)] The books are printed/publi-shed/sold on paying copyright fees to a foreign publisher for publishing Indian language edition (translated). [e.g. Ananda Publishers Ltd. pays fees to Penguin (NY)] Ans. The supply of books shall be treated as supply of goods as long as the supplier owns the books and has the legal rights to sell those books on his own account. Q. 14 Whether legal services other than representational services provided by an individual advocate or a senior advocate to a business entity are liable for GST under reverse charge mechanism? Ans. Yes. In case of legal services including representational services provided by an advocate including a senior advocate to a business entity, GST is required to be paid by the recipient of the service under reverse charge mechanism, i.e. the business entity – Manuals – Ready reckoner – Law and prac
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