It should be noted that, if in a hotel, declared tariff for only one
single room is more than Rs.7500/-, then also GST will be levied at 18% and ITC
shall be available
Examples:
1. Karan decided to throw a party in
XYZ Cafeteria, he booked the cafeteria for Rs. 15,000/- excluding applicable
GST. What shall be the GST amount?
Solution: Applicable GST rate on
standalone restaurants is 5% , thus GST amount shall be Rs. 750/- (15000 * 5%)
2. Arjun booked an air-conditioned
restaurant for his parents for Rs. 5250/- inclusive of GST. It was a standalone
restaurant, considering the restaurant has correctly calculated GST as per applicable
rates, how much GST is charged?
Solution: Applicable GST rate on
standalone restaurants whether air-conditioned or otherwise is 5%, thus GST
amount charged is Rs. 250/- ((5250/105% )* 5%)
3. Tom booked restaurant DEF for Rs.
7,500/- excluding GST, DEF is situated inside Hotel Ashiyana. Hotel Ashiyana is
4 Star Hotel and declared room tariff for its Suite Room is Rs. 8,000/- while
declared tariff for other rooms is Rs. 4,500/-. Calculate GST amount.
Solution: Restaurants in hotel
premises having room tariff of Rs. 7,500/- and above per unit per day even for
a single room attract GST of 18%. Thus GST will be Rs. 1,350/- (7500*18%)
4. Ishwar booked restaurant LMN for
Rs. 12,000/-, LMN is situated on the ground floor of Hotel Raahi. There are 16
Rooms in hotel and declared tariff for all the rooms is less than Rs. 7,500/-.
Restaurant owner wants to claim ITC, can he do so?
Solution: ITC cannot be claimed as
all the restaurant is operating in premises of Hotel Raahi and declared tariff
for not even a single room of Hotel Rahi is more than Rs. 7,500/-.
5. Harry booked restaurant PQR for
Rs. 10,000/- excluding GST, PQR is situated on third floor of Hotel Aaram.
There are 20 rooms in the hotel. Calculate GST to be paid by Harry considering
that declared tariff for the suite room in the hotel is as under:
On Leaflets
available at hotel : Rs. 7,800/-
On Make My Trip :
Rs. 5,600/-
On Yatra.com : Rs.
5,800/-.
Solution: As per relevant GST Laws
if there are more than one declared tariffs for the same accommodation unit,
the highest available declared tariff shall be taken into account. Thus highest
tariff being Rs. 7,800/- declared on Leaflets, GST shall be levied at 18%. Thus
total GST to be paid by Harry is Rs. 1,800/- (10000*18%)
6. Mehul booked restaurant JKL for
Rs. 12,000/- excluding GST on 1st August 2018 for giving birthday party
to his friends on 26th August, 2018, JKL is situated in premises of
Hotel Staywell. Declared tariff of suite room of Hotel Staywell as on 1st
August was Rs. 7,000/- and on 26th August it was Rs. 7,800/-.
Calculate amount of GST that the restaurant shall levy.
Solution: GST rate applicable as
on the date of providing services shall be taken into consideration. On 26th
August, declared tariff is Rs. 7,800/- thus applicable GST Rate is 18%. Amount of
GST that the restaurant shall levy is Rs. 2,160/- (12000*18%).
Disclaimer:
The views expressed on this blog are strictly
personal and for knowledge purpose only. The contents of this blog are solely
for informational purpose and it does not constitute any professional advice or
recommendation. The laws related to GST and other taxes are under evolution and
subject to constant changes and amendments over time. It is suggested to take
specific legal advice and necessary due diligence before relying on the
contents and information of this Blog. The authors of this blog, does not
accept any liabilities for any loss or damage of any kind arising out of
information on this blog and for any actions taken in reliance thereon.
