Rate of Tax

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients who is having a hall and giving free of cost but charging only for the food supply for any function. He charges the GST tax only on food @ 5% and no seperate consideration received for hall.

Another client runs the hotel and provides breakfast for a complement which is included in the room rent. He charges the GST tax only on the Room rent @ 12% but no separate consideration is received for food and drinks.

Please let me know whether this procedure is correct with the rate of tax or something else.

Please advise me on this.

Thanks in Advance.

AI Summary

GST on Composite Supplies: Hall Functions May Vary, Hotel Room Includes Breakfast at 12% per CGST Act, 2017. A client provides a hall free of charge but charges 5% GST on food supplied for functions. Another client runs a hotel where breakfast is included in the room rent, charging 12% GST on the room rent without separate charges for food. An expert advises that both scenarios involve composite supplies, where the GST rate should apply to the principal supply. For the hall and food supply, the GST rate could be 5% or 18% based on notifications. The hotel scenario should follow the GST rate applicable to the room rent, as per the CGST Act, 2017.