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

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.