Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 26-9-2017 Last Replied Date:- 20-8-2018 – 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). 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. 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 rec
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ntry 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, merrygo 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, and GST is le
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
entries at Sl. Nos. 34(ii) [admission to cinema] and 7(ii)(vi)(viii) [Accommodation in hotels, inns, etc.], of Notification No. 11/2017-CT (Rate) dated 28th June 2017, price/ declared tariff includes the tax component or not? Ans. Price/ declared tariff does not include taxes. Whether rent on rooms provided to inpatients is exempted? If liable to tax, please mention the entry of CGST Notification 11/2017-CT(Rate)? Ans. Room rent in hospitals is exempt. 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%. Whether home stays providing accommodation through an Electronic Commerce Operator (ECO), below threshold limit are exempt from taking registration? Ans. Notification No. 17/2017-Central Tax (Rate), has been issued ma
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
plicable 1. Less than ₹ 1000 Nil 2. ₹ 1000 and above but less than ₹ 2500 12 % 3. ₹ 2500 and above but less than ₹ 7500 18 % 4. More than ₹ 7500 28 % How will the rates be affected if a Hotel/ Club etc. provides discount on the declared tariff(s)? Ans. The GST rates applicable on all accommodation establishments (hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes) depends on the declared tariff per unit per day by the respective establishment. If a discount is provided, then the slab of GST rate applicable (as per table above) will remain the same, however, the rate would be charged on the actual tariff charged. E.g. If a room costs ₹ 10,000/- per day and 40% discount is available on the same, then GST rate of 28% (for tariff of ₹ 7500/- and above) will be applicable on ₹ 6000/- i.e. on the actual tariff charged. Therefore, the actual billing amount will be ₹ 6000/
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
is the present system different from GST? Ans. It is an indisputable truth that the introduction of GST will affect the F&B and the Restaurant and Hospitality industry in a considerable manner, and will bring about wide changes in the present system that prevails in the industry. Under the present system, if the total restaurant bill is ₹ 100, then the service tax is charged at the rate of 15%, only on 40% of the total bill amount. This means the effective rate of service tax is 6%. Other than this, VAT is applicable on 60% of the bill amount. After the GST comes into the picture, the entire amount shall be liable for GST. The GST rules require that there will be two different types of GST levied on each transaction – State GST and Central GST. The rates of these two taxes are finalized by the Central Government. But remember that both of these taxes will be applicable on the entire bill amount. The new GST regime promises the following- Elimination of Tax Cascading Uniform l
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
18% tax. Also, five-star restaurants will be charged a luxury tax of 18 percent. Hotels, lodges with tariffs less than ₹ 1,000 will be taxed at 0%. Hotel lodges with tariffs between ₹ 1,000- ₹ 2,500 will be charged 12% tax Hotel lodges with tariffs between ₹ 2,500- ₹ 7,500 will be charged 18% tax. Hotel lodges with tariffs more than ₹ 7,500 will be charged 28% tax. What is Input Tax Credit? Ans. For taxes to be paid at the previous stage of the supply chain, Input Tax Credit is granted. This is done to ensure that the tax is levied only on the amount of value addition at each stage of the supply chain. For instance, a restaurant owner would get credits for the taxes paid on the raw materials purchased while computing the final indirect tax liability on the items that are collected from the consumers. If your restaurant business has annual sales above ₹ 20 lakh, then you are liable to pay the GST. How would my restaurant benefit from the GST? A
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
heer in the GST regime. Under the earlier tax regime, restaurant business owners did not get any option to adjust the output service tax liability with the credit of input VAT on goods consumed. However, under the new regime both these taxes will get subsumed into GST and thus irrespective of goods and services, the credit of input will be available for adjustment against the output liability. This will further optimize the working capital of these restaurants and in turn, consumers can expect a more superior quality of food and services. Raw materials can be procured at subsidized rates from agriculturalists and farmers at a single stroke instead of owners having to negotiate taxes shall remain uniform throughout states thus making the competition even. The overall cost of procuring goods will thus decrease substantially, making the restaurant business a viable and easily manageable venture again. How would GST impact the restaurants selling alcoholic beverages? Ans. Alcohol comes und
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d to pay any tax? Ans. In accordance with the provisions of section 25(4) of the CGST Act, 2017, branches in different States are considered as distinct persons. Further, as per Schedule I, this constitutes supply made in the course or furtherance of business between distinct persons even if made without consideration. As it is an inter-State supply, the registered person is required to pay IGST. A registered person is supplying manufactured food products to another person. Transportation charges are required to be paid by the supplier but are actually paid by the recipient. Whether this transportation charges would be added in the supply value? Ans. If the supplier is liable to pay any amount in relation to a supply, such amount would be a part of transaction value, even if the same has been paid by the recipient. In this case, the transportation charges shall be added to the value of supply. What will be the rate of tax on cold drinks (non- alcoholic beverages) and ice cream when ser
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
unts within thirty days of the appointed day. Is Atta / Maida/ Besan supplied in bulk liable to tax under GST? Ans. Outward supply of these goods if affected without registered brand name is exempt under GST. However, if the outward supply is made under a registered brand name and put up in unit container then it would be liable to tax @ 5%. Case Study: Caterpillar is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned and supplies food as well as liquor, the ground floor serves only food and is non-air-conditioned. Cater pillar wants to know,- Whether they will charge GST @ 12% on supplies made from ground floor or 18%? Ans. Tax will have to be charged @ 18% irrespective of from where the supply is made, first floor or second floor. If any part of the establishment has a facility of air conditioning then the rate will be 18% for all supplies from the restaurant. Whether they can raise one tax invoice for
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
edit was available on the date of purchase. Section 140(1) of the SGST Act, 2017 allows them to carry forward the credit on account of VAT. Whether they can opt for composition (last year their turnover was more than rupees one Crore)? Ans. No. they are not eligible for composition levy as they are also supplying liquor. Can they issue separate series of tax invoices for their supplies from first floor, ground floor and takeaway counter? Ans. In accordance with the provisions of Rule 46(b) of the CGST Rules, 2017 the tax invoice need to be serially numbered not exceeding sixteen characters, in one or multiple series. As such, they can issue different series of tax invoices as stated but it must conform to the requirements as given in the said rule. Is there any provision for tax to be paid under reverse charge incase where electronic commerce operator is involved? Ans. Yes, there are provisions and the same are contained in all the laws for GST (be it Central GST, Integrated GST and UT
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
operator under the reverse charge? Ans. For cab services, the GST rate is 5%/12% whereas for travel booking operators it would depend upon the service that you have consumed. (Different for airlines, budget hotels, luxury hotels etc) Is the tax is payable under reverse charge in all the scenarios for the cab service? Ans. No, the following has to be kept in mind:- The services are though electronic commerce operator. (Since the reverse charge is to be paid by the electronic commerce operator) The services relate to the transport of passenger and not goods. I booked a room via an Online Travel Agent (say MakeMyTrip) for Taj Hotels, Delhi GST is charged by Taj Hotels on all the bills but it was supposed to be paid on reverse charge by make my trip isn t it? Ans. No, the tax would be paid by MakeMyTrip under reverse charge only when the service provider (Taj Hotels) is not registered under the Act. Since in this case the service provider (Taj Hotels) is already registered accordingly, the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
000/- or more per day; (ii) renting of premises, community halls, kalyanmandapam or open area, etc where charges are INR 10,000/- or more per day; (iii) renting of shops or other spaces for business or commerce where charges are INR 10,000/-or more per month. 15. Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation less than one thousand rupees per day or equivalent. Whether GST is payable under reverse charge mechanism in respect to procurements from the unregistered suppliers? Ans. As per section 9(4) of the CGST Act, 2017, a registered recipient is liable to pay GST in respect to supplies received from the unregistered suppliers. However, the Central Government vide Notification No.08/2017-Central Tax (Rate) dated 28.06.2017 (on the similar lines, State Government has also issued Notification) has exempted the value of supply upto ₹ 5,000/- per day per registrati
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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. Query : What amount we have to show on GST Return ? And if we will show full amount means ₹ 8,000.00 and GST Charge @ 18% then We have to create 1 Invoice of whole amount ? Also some few question :- 1- In accodomation services on Intra state but client come from different different states then we have to charges CGST & SGST or IGST ? 2- Because our service is to Un-Registered (Customer) so will we file B2C (other) Column in GSTR-1? 3- According GSTR-1 we have to file return on B2C (other) Column but in that not no option for mention invoice number then can we fill total month invoice value ? 4- Breakfast include on our room tariff but we are issuing total 1 Invoice to customer of total room tariff and not mentioned breakfast amount seperately and breakfast expenses we are showing in our books of account so can we do it ? Please quote
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =