TaxTMI 
TaxTMI 
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?
Taxability -SEZ
12 Dec 2022 
6 Replies 
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Accommodation service tax treatment for SEZ supplies: zero-rating and GST rate determined by room tariff rather than recipient.
Accommodation services to an SEZ unit are zero rated; GST rate determination shifted from declared tariff to value of supply, while practical handling where LUT is not used may involve paying IGST and claiming refund. The applicable tax classification for accommodation is determined by room charges rather than by the service recipient, with differential rates tied to room charge slabs. (AI Summary)
Accommodation services to an SEZ unit are zero rated; GST rate determination shifted from declared tariff to value of supply, while practical handling where LUT is not used may involve paying IGST and claiming refund. The applicable tax classification for accommodation is determined by room charges rather than by the service recipient, with differential rates tied to room charge slabs. (AI Summary)