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 ?

AI Summary

Clarification on GST: Hotels with room tariffs under 7500 should apply 12% GST, including banquet services. A query was raised regarding the correct Goods and Services Tax (GST) rate for hotels with banquet services and room tariffs below 7500. The question was whether the 18% GST charged for banquet services is appropriate and if it relates to the room tariff. In response, it was clarified that according to the 37th GST Council meeting, for rooms with tariffs below 7500, the applicable GST rate is 12% with Input Tax Credit (ITC), effective from October 1, 2019.