The restaurant within a hotel with a tariff above Rs 7500 can collect gst at different rates (5%,12%,18%,28%) cimultaneously?
Replies (3)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) applicable to restaurants operating within hotels, specifically when the accommodation tariff exceeds ₹7500 per day. While restaurants typically attract a 5% GST rate, the presence of a high tariff triggers different GST rules. According to Notification 20/2019 CT, restaurants in specified premises (offering accommodation above ₹7500) are subject to 18% GST with Input Tax Credit (ITC). However, Notification 3/2022 CT (r) indicates 12% GST for tariffs up to ₹7500 and 18% for tariffs above ₹7500, creating a nuanced situation for combined hotel and restaurant services.
As per Notification 20/2019 CT its 18% with ITC for the Resturant under specified premises. So it's 18%.
Note : Specified Premises means premises providing „hotel accommodation‟ services
having declared tariff of any unit of accommodation above seven thousand five hundred
rupees per unit per day or equivalent.”.