Hotel & Resturant services

[DIVYAM JAIN]

What are the provisions & rate applicable for hotel & Resturant industry

Wharther a Service Reciepient can take credit for amount paid to hotels

Who can charge tax@5% and who can charge @18%

[HNA CharteredAccountants]

1. Rate applicable for standalone Restaurant service is 5% ;

2. Restaurant service located in a Hotel having the room charges <7500 per unit per day - 5% ; > 7500 - 18%

3. Hotel Room Charges - <1000 - Exempted; 1000-2500 - 12%; 2500-7500 - 18% ; >7500 - 28%

4. Service recipient of Hotel service is eligible for credit, if the located in the same state.

5. Service recipient of Restaurant service used for further supply of Restaurant service - Eligible ; Service recipient of Restaurant service used for other purpose - not eligible.

Regards

Sudhir V S

[email protected]

AI Summary

GST Rates for Hotels & Restaurants: 5% for Standalone Services, Up to 28% for Premium Rooms, Credit Claimed In-State Only. A discussion on the Goods and Services Tax (GST) applicable to the hotel and restaurant industry highlights the following: standalone restaurant services and those in hotels with room charges below 7500 per day are taxed at 5%, while those in hotels with room charges above 7500 are taxed at 18%. Hotel room charges are exempt if under 1000, taxed at 12% for 1000-2500, 18% for 2500-7500, and 28% for over 7500. Service recipients can claim credit if located in the same state, with specific eligibility for restaurant services based on their use.