Goods and Services Tax – GST – By: – CA.VINOD CHAURASIA – Dated:- 25-9-2017 Last Replied Date:- 27-10-2017 – Introduction: This article discusses in detail about the GST taxability of services of provided by hotel industry. Types of services provided by Hotel Industry: Room accommodation services. Serving of foods and liquor in restaurant and in room. Rent a cab. Mandap keeper. Banking and financial services like foreign currency exchange. Supply of packed food items as mini bar. Renting out the premises for events, conferences etc. Catering. Laundry services. Business support services. Telecommunication services like telephone, fax, wifi. Beauty parlour Gymnasium services. Club Facility Applicable GST Tax Rates Renting of hotels, inns, guest houses, clubs, campsites or other commercial places Sl. No. Room Tariff Per Day Rate of Tax 1 Less INR 1,000 0% 2 Between INR 1000 but less than 2500 12% With Full ITC 3 Between INR 2500 but less than 7500 18% With Full ITC 4 INR 7500 or above 28
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
vents 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 IPL and the like; 28% With Full ITC Point to be Noted: Serving of Alcoholic drinks will be outside the preview of GST and local sales tax or VAT shall be applied on the same. It is advisable for the hotel to issue the separate bills for alcoholic drinks and foods. RENT A CAB 1 Rent a cab (If fuel cost is borne by the service provider) 5% with No ITC. ITC shall be available if cab is booked from other cab operator. 2 Rent a cab (If fuel cost is borne by the service recipient) 18% with ITC Credit. MANDAP KEEPER 1 Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Place of Supply Accommodation by a hotel, inn, guest house, home stay club or campsite Location of immovable property Accommodation by a hotel for organising marriage or reception or matters related thereto official, social, cultural, religious, or business function Location of immovable property Any services ancillary to the above Location of immovable property Restaurants or catering services, personal groomig, fitness, beauty treatment, health services Location where services are actually performed Time of Supply: In case of Food, time of supply would be immediately after the delivery happens In case of service, time limit of 30 days available for raising the invoice. For advance booking, the time of supply is due immediately on receipt of money. Input Tax Credit Input tax credit is available: in case of all purchases of materials for day to day operations of the Hotel. in case of purchase of capital goods like furniture & fixtures etc, cutlery, bed linen, utensils etc. Plant &a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r picture of the tax they are paying. Improved Quality of Service How many times have you had to wait in the hotel lobby wondering if you would miss your flight back home because your bill was still being prepared? With just one tax to compute, the checking-out process at hotels and restaurants will now become easier – another perk that the hospitality industry can brag about. Availability of Input Tax The tourism and hospitality industry will find it easier to claim and avail input tax credit (ITC) and will get full ITC on their inputs. Before GST, the tax paid on inputs (raw edibles for food, cleaning supplies etc.) could not be adjusted against the output without any complications. However, this will become easier in the GST regime. The Cons of GST Increased Technological Burden When the service tax was first introduced, there were a lot of mix ups. GST, thankfully, has very clear guidelines on how each industry needs to manage their accounts and file returns but it will require bus
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =