Taxes on hotel sector

190 views 5 replies

KUMAR SWAMY MASNA

accountant

103 Points Joined February 2017

one of my friend has started hotel business with banquet halls and he took GST license also.
1. He is now paying 70000 rent for a month to owner. what about GST ? The owner is taking the rent amount through cheque so GST should be paid by owner or my friend ?
2. sale of food and cool drinks in his hotel. both in various tax rates five and 28 percent . He is eligible for claim ITC ? What is the tax rates for him with claiming ITC or without claiming ITC ?
3. in the same premises he had one banquet hall if a function held in there how much tax he has to be pay ?

Replies (5)

CA ABHAY GUPTA

Practice

3235 Points Joined August 2009

1. he needs to make payment of GST only in case charged by owner of property if he is not charging then simply deduct TDS and make payment after tds.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

1. GST amount need to paid by Owner but the same s being collected from your friend. (Moreover it's depends on rent agreement whether 70 k is including GST)
2.Need to charge 5% without ITC (Refer Notification 20/2019 CT (r))
3. It's 5% GST without ITC(Refer Notification 20/2/19 CT rate) Note : if ‘hotel accommodation’ services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent then the GST rate for S.no. 2 & 3 above shall be 18% with ITC