<h1>New Rules for Restaurant Services in Hotels: 18% Tax with ITC on 'Specified Premises' Over Rs. 7,500 Daily Rate.</h1> The FAQs regarding the classification of 'specified premises' for restaurant services in hotels, effective April 1, 2025. A 'specified premises' is defined based on the value of hotel accommodation services provided, specifically above Rs. 7,500 per unit per day. The tax rate for restaurant services at these premises is 18% with input tax credit (ITC), while outside such premises, it is 5% without ITC. The document details the process for declaring premises as specified, including filing deadlines and the validity of declarations. It also clarifies the implications for suppliers with multiple premises and the treatment of input tax credits.