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 hotel and restaurant services vary by establishment type and tariff, affecting input tax credit eligibility. GST rates for hotel and restaurant services are differentiated by establishment type and room-tariff bands, with standalone restaurants at a lower rate and restaurants in hotels subject to rate classification tied to hotel room tariffs; hotel accommodation receives graded rates including an exemption band. Input tax credit is available for hotel services where supplier and recipient are in the same state, and restaurant service credit is permitted when used to make further restaurant supplies but not when used for other purposes.