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

Uniform GST rate application: resorts cannot reprice one room to treat all rooms at higher GST and claim input credit.
The tax rate must be applied at the resort level rather than room wise: a resort should not reprice a single room merely to treat all rooms as taxable at the higher rate. A resort may choose to charge the higher rate and avail input tax credit for the establishment, but where supplies to some rooms are lower taxed the operator must perform the prescribed credit reversal mechanism for input tax attributable to those rooms. Evidence of the practice can be submitted to the GST Council.