GST on Hotel industry
By: – CA.VINOD CHAURASIA
Goods and Services Tax – GST
Dated:- 25-9-2017<\/p>\n
Introduction: This article discusses in detail about the GST taxability of services of provided by hotel industry.
\nTypes of services provided by Hotel Industry:
\n * Room accommodation services.
\n * Serving of foods and liquor in restaurant and in room.
\n * Rent a cab.
\n * Mandap keeper.
\n * Banking and financial services like foreign currency exchange.
\n * Supply of packed food items as mini bar.
\n * Renting out the premises for events, conferences etc.
\n * Catering.
\n * Laundry services.
\n * Business support services.
\n * Telecommunication services like telephone, fax, wifi.
\n * Beauty parlour
\n * Gymnasium services.
\n * Club Facility
\nApplicable GST Tax Rates
\nRenting of hotels, inns, guest houses, clubs, campsites or other commercial places
\nSl. No.
\nRoom Tariff Per Day
\nRate of Tax
\n1
\nLess INR 1,000
\n0%
\n2
\nBetween INR 1000 but less than 2500
\n12% With Full ITC
\n3
\nBetwe<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n in 5-star or above rated Hotel = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nasium services = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n imes difficult to differentiate between a Value Added Tax and an entertainment tax for the common man. However, under the GST regime customers will see only a single charge on their bill and it would give them a clear picture of the tax they are paying. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on Hotel industryBy: – CA.VINOD CHAURASIAGoods and Services Tax – GSTDated:- 25-9-2017 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 … Continue reading “GST on Hotel industry”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7912","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7912"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7912\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n18% With Full ITC
\n7
\nServices 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 IPL and the like;
\n28% With Full ITC
\n Point to be Noted:
\n * Serving of Alcoholic drinks will be outside the preview of GST and local sales tax or VAT shall be applied on the same.
\n * It is advisable for the hotel to issue the separate bills for alcoholic drinks and foods.
\nRENT A CAB
\n1
\nRent a cab (If fuel cost is borne by the service provider)
\n5% with No ITC.
\nITC shall be available if cab is booked from other cab operator.
\n2
\nRent a cab (If fuel cost is borne by the service recipient)
\n18% with ITC Credit.
\n MANDAP KEEPER
\n1
\nBundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, cl<\/p>\n
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\n18% with full ITC Credit.
\n7
\nClub Facility.
\n18% with full ITC Credit.
\nHow to determine place of supply in case of hotel industry:
\nNature of Services
\nPlace of Supply
\nAccommodation by a hotel, inn, guest house, home stay club or campsite
\n Location of immovable property
\nAccommodation by a hotel for organising marriage or reception or matters related thereto official, social, cultural, religious, or business function
\n Location of immovable property
\nAny services ancillary to the above
\n Location of immovable property
\nRestaurants or catering services, personal groomig, fitness, beauty treatment, health services
\nLocation where services are actually performed
\n Time of Supply:
\nIn case of Food, time of supply would be immediately after the delivery happens
\nIn case of service, time limit of 30 days available for raising the invoice.
\nFor advance booking, the time of supply is due immediately on receipt of money.
\nInput Tax Credit
\n Input tax credit is available:\n <\/p>\n
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\n * Improved Quality of Service
\nHow 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.
\n * Availability of Input Tax
\nThe 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.
\nThe Cons of GST
\n * Increas<\/p>\n
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