GST

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R S Sai Kumar (Querist)

30 November 2019 A Private Limited Company has a property at Hyderabad. The company entered into an agreement with OYO . Oyo will book rooms and their commission is 24.78%. As per the GST act, up to Rs.1,000 per day rent is exempted and above Rs.1,000 per day is chargeable at 12%. The hotel is also supplying food to the customers. What is rate of GST on these food supplies? Suppose one customer stays for two days and rent is Rs.1800 for two days, hence this amount is exempted from GST, apart from room rent food supplies of Rs.350, were also made. Now how to work out the GST component = Room rent Rs.1,800 + Food Rs.350 Total amount is Rs.2,150 – please tell me how to work out GST?
R S Sai Kumar

CA Ankit R Momaya

CA Ankit R Momaya (Expert)

30 November 2019 In the above Case, Room Rent of Rs. 1,800 is exempted form GST.

GST @ 5% is applicable on Food served (This output tax has to be paid without availing ITC).

R S Sai Kumar

R S Sai Kumar (Querist)

30 November 2019 Thanks , We are claiming input GST for room rents. Is the Input not allowed for purchase of food items? Please reply

CA Ankit R Momaya

CA Ankit R Momaya (Expert)

30 November 2019 No ITC can be availed

R S Sai Kumar

R S Sai Kumar (Querist)

30 November 2019 Thanks, CA Ankit R Momaya - Revenue from Food is meagre and not more than Rs.3000 per month, whereas the revenue from room rents is around Rs.6 to 8 laksh,GST inputs on purchases for rooms maintenance etc are around Rs.20,000 per month, hence if we donot claim input, we are put loss, hence will you please tell me a remedy.

R S Sai Kumar

R S Sai Kumar (Querist)

01 December 2019 If we pay GST @ 12% on food also then can we claim input T=GST

R S Sai Kumar

R S Sai Kumar (Querist)

05 March 2020 Thanks to one and all for the valuable suggestions made.

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