Hotel industry

This query is : Resolved

R. Meenakshi (Querist)
Follow

13 July 2017 What is the treatment of discount in the room tariff under GST? Can it deducted from the value of supply?
Case No: 1
Suppose, my room tariff is Rs. 1200/- and Rs. 300/- discount is given and it is shown in the invoice
1. Since the rate after discount is less than Rs.1000/- whether GST exempt
2. Should I pay GST on the room tariff before discount

Case No:2
My room tariff is Rs. 1200/- Discount Rs. 100/- on what amount GST to be levied?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 July 2017 1 Room tariff after discount is less than 1000 GST not applicable.
2 GST applicable on Rs 1100.

Message likes : 1 times

Rahul varshney

Rahul varshney (Expert)
Follow

13 July 2017 Discounts will be treated differently under GST. Discounts given before or at the time of supply will be allowed as deduction from transaction value.
Case 1: GST not applicable.
Case 2: GST will be levied on Rs. 1100.

Rahul varshney

Rahul varshney (Expert)
Follow

R. Meenakshi

R. Meenakshi (Querist)
Follow

13 July 2017 I got a different answer from another expert. He says if after discount the tariff comes below Rs. 1000/-, say for example Rs. 900/- then we have to levy GST on Rs. 900/- at 12%. Please clarify

R. Meenakshi

R. Meenakshi (Querist)
Follow

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 July 2017 GST applicable on:-
(i) renting of rooms where charges are Rs 1000/- or more per day.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 July 2017 Levy GST on Rs. 900/- at 12% is absurd and no where I have seen such instruction

Message likes : 2 times

R. Meenakshi

R. Meenakshi (Querist)
Follow

13 July 2017 His contention was this:
To decide the rate of GST, only the base tariff before discount should be considered.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 July 2017 Ask him for any notification on this. In the exemption schedule for services it is stated as (i) renting of rooms where charges are Rs 1000/- or more per day.

Message likes : 2 times

R. Meenakshi

R. Meenakshi (Querist)
Follow

13 July 2017 Definitely. Will checkup and come back