Notification No. 20/2019-CT (Rate) dated 30/09/2019 amending the original notification no. 11/2017-CT (Rate)

GST Rate- For Hotel Rooms

Value of Supply per day per unit Old Rate New Rate

Less Than ₹ 1000 Nil Nil
Equals to ₹ 1000 12% Nil
₹ 1001 to ₹ 2500 12% 12%
₹ 2501 to ₹ 7500 18% 12%
₹ 7501 and above 28% 18%

Value of Supply = (Declared Tariff – Discount received)

Outdoor catering services/Catering plus renting of premises

Declared tariff per day per unit  Old Rate  New Rate

Upto ₹ 7500 18% with ITC 5% without ITC
Exceeds ₹ 7500 (i.e., Specified Premises) 18% with ITC 18% with ITC

Declared tariff = charges for the room along with all the facilities provided in the room like furniture, Air conditioner, television, refrigerator etc.

Restaurant service in a Hotel

Declared tariff per day per unit Old Rate New Rate

Less than ₹ 7500 5% without ITC 5% without ITC
Equals to ₹ 7500 18% with ITC 5% without ITC
Exceeds ₹ 7500 18% with ITC 18% with ITC

Declared tariff = charges for the room along with all the facilities provided in the room like furniture, Air conditioner, television, refrigerator etc.

Standalone restaurant service

Old Rate New Rate

5% without ITC 5% without ITC

Food supplied in trains or at platforms by Indian railways

Old Rate   New Rate

5% without ITC 5% without ITC

Place of Supply

1. For Hotels

Case-1 Supplier, Recipient and Hotel property located in India

When supplier, recipient and hotel property is located in India – It shall be the place where the Hotel is located. (Sec12 of IGST Act 2017)

Case-2 Supplier and Recipient are located in India but Hotel property is located outside India

When supplier and recipient property is located in India but hotel property is located outside India– It shall be the place of the recipient. (Sec12 of IGST Act 2017)

Case-2 Supplier or Recipient are located outside 

When supplier or recipient are located outside India –It shall be place where Hotel is located. (Sec12 of IGST Act 2017)

1. For Restaurant

The place of supply of restaurant and catering services, person grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed [Sec12(4)] of IGST Act 2017]

Definitions

Restaurant service means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied.

Outdoor catering means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.

Hotel accommodation means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of timeshare usage rights by way of accommodation.

Declared tariff means charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

Specified premises mean 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.”.

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Qualification: LL.B / Advocate
Company: S & S ASSOCIATES
Location: Chandigarh, Chandigarh, IN
Member Since: 10 Oct 2019 | Total Posts: 2

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2 Comments

  1. Akshay Patil says:

    Dear Sir,

    As per amendment, rate for outdoor catering service (other than at specified premises)of above Rs.7500 attracts the rate of 5% without ITC but you have mentioned 18% with ITC.

    1. Sanjeev Rana says:

      Your Query: As per amendment, rate for outdoor catering service (other than at specified premises)of above Rs.7500 attracts the rate of 5% without ITC but you have mentioned 18% with ITC
      Reply: Dear Mr Akshay rate for outdoor catering service (Other than specified premises) attracts the rate 5% without ITC. Specified services 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. Even if for single room if its exceeds ₹ 7500.00 than the rate charged will be 18% with ITC (outdoor catering)

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