hotel industry

[VIGNESH]

sir kindly clarrify, hotel having Banquet and charging 18% GST , but room rates are below ₹ 7500/- , is the taxation what we follow is correct! is GST rate for Banquet have relevance to the Room Tarriff ?

[PAWAN KUMAR]

Dear Sir,

As per 37th GST council meeting, the decion for relief to hotel industry was recommended.

proposed date of implementation was 01.10.2019. Vide the press release if the declared tariff of room is below ₹ 7500, the applicable GST rate is 12% with ITC.

AI Summary

Hotel GST classification: linkage between room tariff and applicable GST rate affects input tax credit eligibility. The GST Council recommended that where a hotel's declared room tariff is below the specified threshold, a lower GST rate applies to hotel services and related supplies, and such supplies remain eligible for input tax credit.