Hotel & restaurants

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2017 THERE IS A PERSON WHO HAVE REGISTERED UNDER COMPOSITION SCHEME & HE HAS HIS HOTEL BUSINESS PROVIDING HOTEL ROOMS FOR STAY PLUS HE HAVE A RESTAURANT PROVIDING FOOD SERVICES TO THE CUSTOMERS , IN THIS CASE WHAT WILL THE GST RATE CHARGED BY HIM ON THE ABOVE SERVICES?
I KNOW THERE IS 1% GST (SGST 0.5% +CGST 0.5%) ON RESTAURANT BUT IS IT ALSO APPLICABLE FOR HOTEL ROOMS?

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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14 July 2017 Composition scheme is available only for Restaurant and not for Hotel for Staying purpose. On Restaurant the Composition GST Rate is 2.5% + 2.5% which he should not charge in the invoice. If he is providing both Restaurant and Hotel Stay Room Service then he cannot opt Composition scheme (exception if the hotel room rent received is less than Rs.1000/- per day)

VK

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2017 Thank you sir...
But Sir, I have 1 Query regarding your reply, u said that, If a person is providing both Restaurant and Hotel Stay Room Service then he cannot opt Composition scheme. But sir if the hotel room rent received is less than Rs.1000/- per day then he can opt Composition Scheme? Please give me solution sir

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