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
|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.