GST Council in the 37th meeting held on 20th September, 2019 at Goa inter-alia, decided to lower GST rates on hotel tariff, outdoor catering and other miscellaneous items. To give effect to its decision they have issued Notification No. 20/2019-Central Tax (Rate) dated 30th September, 2019

GST Rate

NATURE OF SERVICE PARTICULARS TAXABLE AMOUNT TAX RATE CONDITIONS
Hotel  Accomodation VALUE OF ROOM RENTAL upto Rs.1000 0% NO CONDITION
Between Rs.1001 and Rs.7500 12%
Rs.7501 and above 18%
Restaurant  Service Restaurant is part of specified premises* Any Amount 18% NO CONDITION
Restaurant is not part of specified premises* Any Amount 5% No Input Tax Credit
Outdoor Catering Supply by or at specified premises* Any Amount 18% NO CONDITION
Supply by and at other than specified premises* Any Amount 5% No Input Tax Credit
*Specified premises means the premises providing the hotel accomodation services having declared tariff (i.e. published tariff without any discount) of any unit of accomodation above Rs. 7,500.

Rate of GST on outdoor catering services other than in premises having daily tariff of unit of accommodation of Rs 7501 reduced from present 18% with ITC to 5% without ITC. The rate shall be mandatory for all kinds of catering.

Catering in premises with daily tariff of unit of accommodation is Rs 7501 and above shall remain at 18% with ITC.

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Qualification: CA in Practice
Company: G BEDIA & ASSOCIATES
Location: KOLKATA, West Bengal, IN
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15 Comments

  1. Vikash Kumar Shaw says:

    I m working in hotel industry where foods bill raised 5% & Room Services 12 % & 18%. How I claim the ITC & How I reverse the ITC on the basis of turn over.

  2. Harsh says:

    Dear Sir,

    If we have booked rooms in a 5 star hotel for our dealers & associates for a conference. The hotel Charged us 7499 + 12% GST per room per night. Are we allowed to claim ITC at 12% for hotel rooms booked as per the new GST slab for hotels introduced. Kindly Advise. Thanks in Advance.

  3. VARUN says:

    Sir,
    one resort offered an new year party of Rs. 999. In that menu they provide unlimited food & entertainment games ect but not including alcohol for this type of supply what rate of gst applicable

  4. ANIL SHETTY says:

    Sir
    Our client has received single bill in December 19 from Marriage Hall – Hall Rent rent – 18%, catering 5% .Is it proper, as this will be composite service @ 5% ?. Reception hall person has charged 5% only on rent & catering

  5. Priya says:

    Sir
    I have booked a marriage hall(Bhawan) in june 2019 for marriage which occured in november 2019.kindly tell me the gst rate applicability .

  6. LOKESH GARG says:

    Sir we have a restaurent (first floor) and banquet hall on basement. for both the same registration no. has been taken. what is the rate of gst on banquet hall if we provide it on rent with food i.e. per plate

  7. ravi says:

    we have a lodge having 30 rooms.now we are charging 900 per day.we are in plan to take gst and fix rent for half of our rooms at 1500 and remaining half at old price only. is it possible under gst rules

    1. GOVIND BEDIA says:

      It depends whether it is a mixed supply(in that case what is your primary service) or whether both can be differentiated into two different services chargeable to tax accordingly.

  8. sanu jose says:

    Sir,
    I have a sercice apartment on daily rent basis with 2bhk & 3bhk (total 6 nos.) .our rate is rs 3500/-and 4500/-day respectively.
    Kindly advice about the gst rate applicable in this situation

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