Banquet booking with GST

As we are exploring booking of banquet, there are 2 option:

 

1. Booking of banquet on rent and meal separately plus GST

 

2. No charges for banquet but high rate for plate. Definitely, banquet rent is hidden under plate rate.

 

What is tax planning? Please advise.

 

Replies (6)
Quick Summary
This discussion explores tax planning strategies for banquet bookings, particularly concerning Goods and Services Tax (GST). It clarifies the implications of separate charges for venue rental and meals versus bundled pricing. The key takeaway is that Input Tax Credit (ITC) on banquet expenses is only claimable if the booking is for business purposes and meets specific GST regulations regarding the place of supply.

If you are booking banquet for business purpose then only you can avail ITC og GST. Better book banquet with all facilities as part of its rent.
You can have separate bill for Banguet Rent & can claim ITC on the same but it is subject to provision of Section 12(3) the pos is where the Banguet is located. So if you have place of Business in same state where the Banguet is located you can claim ITC as Supplier will charge CGST/SGST only .

Note : ITC is available subject to Conditions prescribed in Section 16(2).
YOU CANNOT CLAIM INPUT TAX CREDIT HERE BECAUSE FOR THE SOLE REASON you are not organizing these banquet for business purpose.
Yes you can if it is in course & furtherance of business.

My simple query as to why Hotel is not charging for banquet separately but the same is being loaded wuth guest meal plate price . Is there any GST / INCOME TAX planning in place ?

Then it's OK.

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