Rate of tax

[Bharat Cholleti]

Greeting of the day!!!

Applicant is running a Marriage Hall, where in they provide Hall and Food what is the rate of tax without ITC and with ITC and its SAC and there is also some times without supply of food only Hall will be provided what is rate of tax with or with out ITC and its SAC . please clarify, thanks in advance.

[Amit Agrawal]

Answer to raised queries depends upon common trade understanding as well as contractual terms between customer and marriage-hall owner.

Still, kindly allow me to share pointers for ease of decision-making, at your end, after considering common trade understanding as well as contractual terms etc.:

A. Based on common trade understanding, if subject '2' services provided falls under 'composite supply', then, applicable rate of tax will be 'tax as applicable for principal supply' on entire consideration (i.e. irrespective of the fact that there are two separate prices specified for two elements of supply or if same is at single price).

B. Where the consideration for entire contract is at single price and based on common trade understanding, such '2' services provided falls under 'mixed supply', then, applicable rate of tax will be for 'supply - among these 2 supplies - which attracts the highest rate of tax'.

C. If there are two separate consideration - which is independent of each other - for each of two services and based on common trade understanding, both these supplies - in conjunction of each other - does not fall under 'composite supply', then applicable tax-rate will be 'separate' for two services and 'independent' of each other. In other words, in this case, there will be 2 different supplies.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Bharat Cholleti]

Dear sir,

While providing Hall with Food a single price they would mention per plate multiply with Number of persons but in providing only Hall they took as hall charges.

[Shilpi Jain]

In case of renting of hall with food for functions - outdoor catering - liable @5% without ITC. Assuming no accomodation more than 7500 is provided at the premises or by the person.

In case of mere renting of hall - rate of tax would be 18%.

AI Summary

Clarification on GST Rates for Marriage Hall Rentals: Composite vs. Mixed Supply, Separate Charges, and ITC Impact An applicant operating a marriage hall sought clarification on the Goods and Services Tax (GST) rates applicable when providing hall rental with or without food services, both with and without Input Tax Credit (ITC). Responses highlighted that the tax rate depends on whether the services are considered a 'composite supply' or 'mixed supply.' For composite supply, the tax rate is based on the principal supply. For mixed supply, the highest applicable tax rate is used. When services are charged separately, each service is taxed independently. Renting a hall with food is taxed at 5% without ITC, while hall rental alone is taxed at 18%.