GST Applicable on Banquet halls

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicable to businesses providing banquet halls for rent along with food services. The consensus is that hall rental is subject to 18% GST, while food provided exclusively with the hall hire is taxed at 5%. It is advised to issue separate invoices for hall rent and food to reflect these different GST rates, even when food is an ancillary service to the main hall rental business.

Hetal Kothari

Hetal Kothari (Querist)
Follow

18 January 2020 An individual is having business to provide banquet halls on rent and also providing foods during the function exclusively to his banquet hall.

what will be applicable rate of GST? Also seperate invoices are to be raised for Hall rent and Food?

Please clarrify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 January 2020 18% GST on hall rent and 5% GST on food.

Hetal Kothari

Hetal Kothari (Querist)
Follow

18 January 2020 Sir thank you for reply. Can you please clarify in case, as banquet hall is his main business and providing food become ancillary to the main business on the condition that the hall is taken on rent. In case scenario also the invoices will be required to be done seperately with different GST rates or it will get clubbed under 18% as the main business category will prevail?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

19 January 2020 Prepare invoice separate with different GST rates.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now