GST rate for accomodation service

 

Hello sir/madam,

After 18-07-2022 the tax rate 12% applicable on hotels,clubs,guest houses,and inns for room rent Rs.1 to Rs.1000 for one day. 

My question is whether the same condition applies to hostels,pandals,tents,camp services? 

My second question is which rate is applicable for hostels,pandals,tents,camps? 12% or 28%?

Thank you.

 

Replies (3)
Quick Summary
This discussion clarifies GST rates for various accommodation services following changes after July 18, 2022. It addresses whether the 12% rate for hotels, clubs, and guest houses also applies to hostels, pandals, and tents. The consensus is that GST rates depend on the daily room rent, with specific rates for services under or over Rs. 7,500 per day, and considerations for food and beverage charges within accommodation.

As per my knowledge, as per Notification No.11/2017-Central Tax Rate and further amendments there on, the applicable GST % on Accommodation charges less than or equal to Rs.7,500/- per day is 12%, and above Rs.7,500/- per day shall apply 18%. This will apply to all accommodation services.


Thank you sir for your response.. Here is another question, in the case of food and beverage services, food service provided within hotel accommodation( example, catering services) where room rent is chargeable more than Rs.7500 per day, then that food will be taxable at 18% instead of 5%. So we can take hostels,tents,and pandals will fall under “hotel accommodation” ?

Showing food charges separately and charging 5% of GST is a good practice.

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