Registration of hotel
This query is : Resolved
22 November 2019
As per sec24(ix) a person supplying goods or services through e commerce operator shall be liable for compulsory registration.A hotel where room tariff is below Rs.1000 supplying service to customer through room booking by Oyo,goibibo etc.In this situation whether the hotel is liable for registration being booking made through Oyo?If it gets registration liability to pay tax never arises as roomtariff is beloRs.1000/- which is exempted and sec23 does not allow to take registration if supplying exempted service.should he take registration or not?
23 November 2019
Registration is not required in such a case.
23 November 2019
As sec24 override the sec23, registration required or not? supply through ecommerce operator mandatory for compulsory registration.if hotel takes registration,ecoomerce operator will collect TCS and collect tax on account of commission.
20 July 2025
Great question! Let me clarify this for you:
Context:
Section 24(ix) of the CGST Act, 2017 says:
Any person making taxable supplies of goods or services through an e-commerce operator is compulsorily required to register, irrespective of turnover.
Section 23 says that persons supplying only exempted goods or services are not required to register.
Your scenario:
A hotel offers room booking through OYO, Goibibo, etc. (e-commerce operators).
Room tariff is below Rs. 1000, which is exempt from GST.
Question: Is the hotel liable to register just because the booking is done through an e-commerce platform?
Legal interpretation:
Section 24(ix) overrides Section 23.
So, if you supply services through an e-commerce operator, you must register compulsorily, even if the supply is otherwise exempt.
However, since the service (room tariff below Rs. 1000) is exempt, the hotel will not be liable to pay GST.
The e-commerce operator will collect TCS (Tax Collected at Source) only on taxable supplies (not on exempted supplies).
Conclusion:
Hotel is required to register under GST because it supplies services through an e-commerce operator (Section 24(ix)).
Despite registration, no GST liability arises on exempted room tariffs below Rs. 1000.
The hotel should register and file NIL returns for exempt supplies.
The e-commerce operator will not collect TCS on exempted services.
Context:
Section 24(ix) of the CGST Act, 2017 says:
Any person making taxable supplies of goods or services through an e-commerce operator is compulsorily required to register, irrespective of turnover.
Section 23 says that persons supplying only exempted goods or services are not required to register.
Your scenario:
A hotel offers room booking through OYO, Goibibo, etc. (e-commerce operators).
Room tariff is below Rs. 1000, which is exempt from GST.
Question: Is the hotel liable to register just because the booking is done through an e-commerce platform?
Legal interpretation:
Section 24(ix) overrides Section 23.
So, if you supply services through an e-commerce operator, you must register compulsorily, even if the supply is otherwise exempt.
However, since the service (room tariff below Rs. 1000) is exempt, the hotel will not be liable to pay GST.
The e-commerce operator will collect TCS (Tax Collected at Source) only on taxable supplies (not on exempted supplies).
Conclusion:
Hotel is required to register under GST because it supplies services through an e-commerce operator (Section 24(ix)).
Despite registration, no GST liability arises on exempted room tariffs below Rs. 1000.
The hotel should register and file NIL returns for exempt supplies.
The e-commerce operator will not collect TCS on exempted services.
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