GST by Hotel Industries

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This discussion clarifies GST charges for hotels and canteen service providers. Whether a proprietorship or a private limited company, if you charge 5% GST on food without claiming Input Tax Credit (ITC), you'll be considered a regular taxpayer. The tax rate remains the same for both composition and regular schemes in this scenario, but your registration status determines how GST is applied on your invoices.

Piyush

Piyush (Querist)
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10 February 2022 1) GST to be charged by hotel (Proprietorship) on its food will be 5% without taking any ITC.
Whether the taxpayer will be considered as under composition or regular taxpayer ?

Also, for Pvt Ltd Co. (Canteen Service Provider) having turnover between 2 to 5 crores, charging GST @5% on its services without taking any ITC on its input.
Same will be considered as regular taxpayer or under Composition ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 February 2022 In both the cases consider it as regular tax payer so that you can charge GST in the hotel and canteen bill.

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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10 February 2022 tax rate is same both in composition and regular for this type of service.

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CA Altamush Zafar

CA Altamush Zafar (Expert)
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12 February 2022 Since the rate of taxation is same therefore you will have to look whether the taxpayer is registered under composition scheme or regular scheme and thereafter accordingly the tax may not or maybe charged in bill of supply/invoice.

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