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TAX RATE ON PACKED WATER BOTTLE

Yogesh (Finance Controller) (104 Points)

10 June 2018

one guest use water bottle in mini bar, hotel person charge 18% GST on water bottle price.
Guest annoyed why we pay GST on water.
please clarify

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5 Replies

Vinod Babu (24196 Points)
Replied 10 June 2018

Yes gst for mineral water sold is @ 18% in regular case.
Suppose the MRP of 1 litre of mineral water is Rs 20.
The 18% gst is included in the amount.
Value is 16.96, Cgst 1.52 sgst 1.52 all sum of these us Rs 20.

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prakin singhal (314 Points)
Replied 10 June 2018

GST is leviable on mineral water and it is included in MRP. The owner cannot ask to pay 18% GST on MRP.

Vinod Babu (24196 Points)
Replied 10 June 2018

The hotel cannot charge again 18% on MRP of mineral water.

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Pankaj Rawat (GST Practitioner) (55062 Points)
Replied 10 June 2018

Not only mineral water but in any product/goods the GST cannot be charged on MRP.

Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.

Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.

Note : Moreover GST is inclusive of MRP

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