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GST on Room & Food

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Saravanan

21 Points Posted on 27 January 2022

Dear Experts,

Do help to resolve the following query

For example first day we are selling rooms in two different tariff like Rs.7400 & Rs.8000 (GST on Room for Rs.7400 is 12% & Rs.8000 is 18%) GST how much we have to charges in F & B ?
Second day we are selling room rate Rs.7400 only not more than that, (GST on Room for Rs.7400 is 12%) GST how much we have to charges for F&B ?

Whether room GST is also correct or not, apart from that we are concern about food GST for In Room Dinning & Restaurant too.

Please do share your valuable reply

Regards

Saravanan

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Posted on 27 January 2022

1 . 18%
2. In resturant it will be 18% , but when supplied in room will be 12% under composite supply.

See once you have a declared tariff in hotel accommodation services for any unit more then 7500/- even if it is for one day you need to charge 18% in restuarant for the whole FY . yes from next fy you can charge 5% without ITC in resturant as will not cover under Specified premises.

Refer Notification 20/2019 CT (r) & read the definition of Specified Premises .