GST on Hotel and Restaurant composite bill

Hello all,

What rate of GST shall apply to food and beverages charges on a single bill including hotel accommodation service also, which is less than Rs 7500/-. Can we charge 12% gst on room tariff and 5% GST on food and bevrages charges?

As per Rule it is written that composite supply of hotel accommodation and restaurant service attracts GST of 5% with no ITC. 

Please clear. 

 

Replies (4)
Quick Summary
GST on hotel accommodation with restaurant services depends on whether it is treated as a composite supply. If supplied together with room tariff below Rs 7500, GST may apply at 5% without ITC on the composite bill. Separate billing may attract different GST rates.

For a single bill that includes both hotel accommodation and food and beverages, where the room tariff is less than ₹7,500, the GST rate is 5% with no Input Tax Credit (ITC).¹

This is considered a composite supply, which means that the entire bill will attract a single GST rate of 5%.

GST Rates for Hotel Accommodation and Food Services - *Hotel Accommodation*:

 If the room tariff is less than ₹7,500, the GST rate is 5% with no ITC. -

*Food and Beverages*: For standalone restaurants, including takeaway, the GST rate is 5% with no ITC. -

*Composite Supply*: When hotel accommodation and food services are provided together, the entire bill attracts a single GST rate of 5% with no ITC, if the room tariff is less than ₹7,500.

You cannot charge 12% GST on the room tariff and 5% GST on food and beverages charges separately, as the composite supply attracts a single GST rate of 5%.

it will be a composite supply so accordingly principal supply rate i.e. hotel accomodation rate of 12% will be applicable on whole supply including food and beverage

Can we charge 5% rate on hotel bill ? In both the service principal service is hotel accommodation?

Then why in the Act it is mentioned that composite services povided by restaurant with hotel accommodation and where room tarrif is less than 7500, will attract GST of 5% without ITC. What is meaning of composite supply here.

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