GSt on HotelS
Applicable GST Rates :
Renting of hotels, inns, guest
houses, clubs, campsites, or other
commercial spaces for lodging or
residential purpose
Tariff per room per day
(Rs.)
0 999
1000 -2499
2500 7499
7500 and above
Other relevant supplies
Renting of motor cab if fuel
cost borne by supplier
Renting of motor cab if fuel
cost borne by recipient
Other services like laundry
services, Spa access, Gym
access, etc.
Getting Ready for GST
Basic Concept Invoicing
Invoice should contain details interalia
For hotel services, place of supply is the
location of the immovable property Name & address of customers with state
code, Service Accounting Code, discounts,
Hence, CGST + SGST shall always be
GST charged on such services (considered rate of CGST & SGST, amount of CGST &
Rate within the state supply) SGST, whether tax is payable on reverse
charge, etc.
Nil Supply comprising two or more supplies
which are naturally bundled is GST to be paid & receipt voucher to be
12% composite supply of hotel services issued for advance received for pre-
(principal supply) booking, etc.
18%
One or more individual supplies of GST paid on purchases of goods & services
28% shall be available as credit (except for tax
goods or services charging a single rate
mixed supply paid on specified ineligible supplies)
GST Tax Payment & Return
Rate
GST on outward supplies to be deposited to Govt. within 20th of the next month
5%
Due date for filing monthly details & return under GST are as follows:
18% GSTR 1 : Details of Outward Supplies (Sales) - 10th of the next month
GSTR 2 : Details of Inward Supplies (Purchases) - 15th of the next month
18% GSTR 3 : GST Return - 20th of the next month
Annual return to be filed under GST in GSTR-9 before 31st December of the next year
CA Suruchi Agrawal |Vimal & Seksaria, Chartered Accountants
31, Ganesh Chandra Avenue, 1st floor, Kolkata - 700 013|Mobile: +91 9874631414 |Email:ag.suruchi05@gmail.com
DID YoU KnoW?
What is the meaning of composite supply & mixed supply?

Composite Supply : Two or more supply provided together in the ordinary course of business and naturally bundled is COMPOSITE SUPPLY & shall be
taxed at the same rate applicable on the principal supply. For example: Renting of room provided with meals (in the European Model or American Model or
Modified American Model or Continental Model) tax would be charged on the entire amount at the rate of the principal supply, i.e. room rent (on the basis
of room tariff)

Mixed Supply : Two or more individual supplies which are not naturally bundled but are provided for a single price. Then such MIXED SUPPLY would be
taxed at the highest rate applicable on any of the individual supplies. For example : Hotel service also providing access to nearby amusement park. Room
rent charged at Rs.7000 per room per day (includes entrance fee for amusement park). Tax on room rent is 18% while for entrance fee of amusement park is
28%. The tax on the amount collected from the customer would be charged at 28%

How would tax be levied under the following circumstances:

Circumstances Taxability

In case extra bed is provided in room room rent is
Rs. 2000 and extra bed charges Rs. 1000
If a customer checks in at 6 a.m. & checks out at 9
p.m., considering check out at 12 p.m., charges for 2
day rent are collected -Rs. 4000 (Rs. 2000 per day)
If charges of Rs. 4500 are taken for only half a day of
room rent
Whether exemption would continue on hotel services
provided to foreign diplomats or consulates
Providing extra bed may be considered as composite supply, as it is naturally
bundled with hotel accomodation & is in the ordinary course of business tax
@12% (applicable on room rent per day of Rs.2000) would be payable
Since charges are taken for 2 days, then GST would be be charged @ 12% only
(applicable on room rent per day of Rs.2000) on Rs. 4000. 2 day charge taken
should be specified in the invoice
Since room rent per day is Rs. 9000, GST would be levied @ 28% on Rs.4500
(applicable on room rent of Rs.9000)
Hotels to charge GST on them. Foreign diplomats or consulates would be
granted refund of taxes paid by them later Notification would be issued under
Sec 55 of the CGST Act.

CA Suruchi Agrawal |Vimal & Seksaria, Chartered Accountants

31, Ganesh Chandra Avenue, 1st floor, Kolkata - 700 013|Mobile: +91 9874631414 |Email:ag.suruchi05@gmail.com