Restaurant Hotel Group Booking Lumpsum Billing on Per Head Basis

[Sagar Phadke]

Facts -

A Restaurant has come up with a scheme for customer. If a group of say 50 persons (for example) makes booking on particular day and time, they are charged at say ₹ 1000/- per person (for example) with unlimited food available in that amount, and say ₹ 1000/- per person (for example) with unlimited liquor available in that amount.

While the group / party goes on various food beverage or liquor orders are punched for actual billing internally for record purpose, however the final bill is raised as follows -

Food & Bev Package = ₹ 1000 x Qty 50 / Total 50000 + 5% GST = 52500/-

Liquor Package = ₹ 1000 x Qty 50 / Total 50000 + 5% VAT = 52500/-

Actual value of the actual consumption and supplies as per the card rates (for example F & B ₹ 35000/- and Liquor say ₹ 25000/-) may be higher or the lower than the above-said billed figures.

Issues -

a) What are the supplies / services involved in this transaction ?

Supply of the food, beverages (restaurant) & liquor ??

If yes would the entire consideration as per, per head charge would get appropriated towards the actual supplies made ?

b) Would, making available a party booking by itself be treated as separate service?

What would be the supply, its consideration and valuation in such case ?

My opinion -

Supply made F & B (at actual Card rate ₹ 35000/-) consideration as per contract ₹ 50000/-

Supply made of Liquor (at actual Card rate ₹ 25000/-) consideration as per contract ₹ 50000/-

[Rajagopalan Ranganathan]

Sir,

As per your query the rate of ₹ 1000/- per head is for unlimited supply of F & B and liquor. However, the card rate of ₹ 35000/- is with reference to quantum of F & B consumed and card Rate of ₹ 25000 is for the quantum of liquor consumed. The party who pays ₹ 1000/- per head is not bothered whether the supply made is valued at ₹ 35000/- or less but as per contract the party has to pay ₹ 1000/- per head. In my view gst is payable on the contract value of supply ,irrespective of the fact the value of the quantum of F & B and liquor consumed is less than or more than the contract value. You have to pay gst on the contract value of ₹ 1000/- per head mutiplied by the number of persons participated in the party.

[Sagar Phadke]

Yes Sir

I have also expressed same opinion @ supply value 50K each.

My fear was, if some officer would creatively think that this is a different kind of service and hence taxable at 18%

Regards

[DR.MARIAPPAN GOVINDARAJAN]

Yours is restaurant service liable to 5% tax under GST laws. Liquor is not coming under GST. You have also billed separately for these two supplies. Therefore there is no question of higher rate of tax. I endrose the views of Shri Renganathan.

[Mahir S]

Yes, both the views expressed by learned persons are correct in the present case.

[KASTURI SETHI]

I support the views of all experts.

AI Summary

Contract value governs GST on per-head restaurant packages, while liquor is subject to a separate state levy, not GST. The per-head unlimited food and beverage package is a restaurant supply taxable on the contract value represented by the per-head charge multiplied by attendees, irrespective of actual consumption value recorded internally. Liquor is subject to a separate state levy outside GST and, when billed separately, is not recharacterised into a higher GST classification; a distinct 'party booking' service was not regarded as altering this valuation approach.