Resorts charging 18% GST as against 5% in their restaurants

[vivin vijay]

As per the recent ruleing restaurant we're to charge 5 percent as against 18 percent but we're not allowed to claim input credit. However, for resort they were given an option that if room rate is more than 7500 then they can charge 18 percent and cliam input credit . This is the background, now I went to a resort recently where my room rate was 5000 but I was charged GST at 18 percent the reason given by the resort was even if one room has a charge over 7500 they can charge at 18 percent for every room .

My question is

can a resort just charge a higher rate for just one room so that they can claim input credit and charge customer 18 percent for all other rooms ?

How do you make suggestion to the GST council regarding practices followed ?

AI Summary

Resort's 18% GST on All Rooms Questioned; Legality and Administrative Simplicity Debated; Input Tax Credit in Focus. A discussion on a forum addresses a resort's practice of charging 18% GST on all rooms, despite only one room being priced above 7500, allowing them to claim input tax credit. The original query questions the legality of this practice. Respondents generally agree that GST should be uniformly applied across the resort and suggest that the practice is incorrect. They recommend raising the issue with the GST Council. One respondent explains that input services are billed collectively, complicating the process of reversing credits for lower-priced rooms, suggesting that charging 18% GST may be administratively simpler.