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/-

AI Summary

Restaurant's Flat Rate Scheme: GST Applies to Entire 1000 Per-Head Charge, Excluding Liquor. Possible Tax Reclassification Discussed. A restaurant offers a group booking scheme where customers are charged a flat rate of 1000 per person for unlimited food and liquor. The billing is done on a per-head basis, with GST applied to food and beverages and VAT to liquor. The discussion revolves around whether the entire per-head charge should be considered for GST, regardless of actual consumption value. Participants agree that GST should be paid on the contract value of 1000 per head, as the service is considered a restaurant service subject to 5% GST, with liquor not covered under GST. Concerns about potential reclassification of the service for higher taxation were also addressed.