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Gst rate in hotel room

a kayes (partner) (22 Points)

19 September 2017

NORMAL TARIFF RATE OF A HOTEL ROOM - RS. 10000/-

AGREED RATE TO TRAVEL AGENT – RS. 6000/-

QUESTION: 1. WHAT WILL BE THE RATE OF GST

2. WHETHER GST RATE WOULD BE CLACULATES ON RS. 10000/- OR RS. 6000/-

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4 Replies

chandan.ramsinghani@gmail.com (116 Points)
Replied 19 September 2017

at Rs 6 thousand prov ided rate agreed is in normal due course and reasonable discount running in that business module. Further price charged is only the consideration and that agent is not a related party as per Gst act

anup h desai (proprietor) (24 Points)
Replied 21 September 2017

Dear Colleagues,

A 5 Star hotel in Mumbai's base rate for room is Rs.9,000/- but after negotiation with regular client they have charged Rs.7,250/-. But GST on the invoice has been charged at the rate of 28%. On query, they have replied that though they have agreed to client for Rs.7,250/-, they have charge GST on Rs7,250/- @ 28% only, and cannot charge GST @ 18%.

Kindly clarify.

ishika (CA) (287 Points)
Replied 29 September 2017

The hotels have been levied with different tariffs and has decided that the hotels with the tariff charts coming in between Rs. 1000 to Rs. 2499 will be having 12%, Rs 2,500 to Rs. 7499 will be having a GST rate of 18 per cent, while the hotels with tariff Rs 7500 and above will be levied with 28 per cent GST.

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