Taxability -SEZ

[VIGNESH]

Sir.Accomodation service Provided by a hotel to staffs of SEZ unit are taxed IGST but the rate of tax depends on the room tariff or @ 18%, without reference to the tariff rates?

AI Summary

Clarifying GST on Hotel Accommodation for SEZ Staff: Zero-Rated with Possible IGST and Refund Options A discussion on the taxability of accommodation services provided by hotels to Special Economic Zone (SEZ) unit staff under the Goods and Services Tax (GST) framework. Initially, GST rates were based on declared tariffs until July 27, 2018, after which they were based on the value of supply. Accommodation services to SEZ units are zero-rated. However, if not covered under a Letter of Undertaking (LUT), Integrated GST (IGST) is payable, with the possibility of a refund. The tax rate depends on room charges: 18% for charges above 7500 INR and 12% for charges below that threshold.