TaxTMI 
TaxTMI 
sir a hotel which has rooms, a restaurant and Banquet Hall. room tariff below 7500/- rs and tax for room is charged @ 12% and Restaurant 5%, what should be rate for Banquet Hall? is it 18% or the rate has any relevance on the room tariff !
Taxability of Banquet Hall in Hotel
01 May 2021 
7 Replies 
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Banquet hall GST rate: standalone supply attracts higher rate; bundled catering may attract lower rate under conditions.
Standalone banquet hall services are taxable at the higher GST tariff and charged independently; Notification No. 20/2019 (effective 1 October 2019) confirms suppliers cannot escape that higher rate. When banquet hall is bundled with food as outdoor catering, treatment as a composite supply applies: such composite supply may attract a lower rate only if provided at premises other than specified premises by suppliers who are neither hotel-accommodation providers at specified premises nor located in specified premises, and only where no input tax credit on inputs/input services has been taken; otherwise the higher rate applies. (AI Summary)
Standalone banquet hall services are taxable at the higher GST tariff and charged independently; Notification No. 20/2019 (effective 1 October 2019) confirms suppliers cannot escape that higher rate. When banquet hall is bundled with food as outdoor catering, treatment as a composite supply applies: such composite supply may attract a lower rate only if provided at premises other than specified premises by suppliers who are neither hotel-accommodation providers at specified premises nor located in specified premises, and only where no input tax credit on inputs/input services has been taken; otherwise the higher rate applies. (AI Summary)