ACCOMMODATION OF ROOMS IN HOTELS UNDER GST
The Goods and Services Tax Act, 2017 came into force
with effect from 1.7.2017 in India.
REGISTRATION
FEES UNDER GST = Rs. NIL
The Rate of tax fixed for accommodation of rooms in
hotels, inns, guest houses, clubs, campsites and other places meant for
residential or lodging purposes under GST regime were as follows:
Details
|
Tariff rate of a unit of accommodation
|
|||
Below Rs.1000
|
Rs.1000 and above but less than Rs.2500 per room per
day
|
Rs.2500 and above but less than Rs.7500 per room per
day
|
Rs.7500 and above per day per room
|
|
Accommodation in
Hotels, inns, guest houses, clubs, campsites, or other commercial places
meant for residential or lodging purposes (including Star Hotels)
|
NIL
|
12% with Full ITC
|
18% with Full ITC
|
28% with Full ITC
|
Similarly, 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 will
attract 18% service tax under GST.
Clarification by Government on GST
rates on hotel accommodation
Reports have
been received expressing doubts whether 5-star hotels are
liable to pay
GST
@ 28% irrespective of the declared tariff of a unit of accommodation.
In this context, it is hereby
clarified that accommodation in any
hotel, including 5-star hotels having declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%. Star rating of hotels is, therefore,
irrelevant for determining the applicable
rate of
GST.
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