TaxTMI 
TaxTMI 
Restaurant Hotel Group Booking Lumpsum Billing on Per Head Basis
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....estaurant Hotel Group Booking Lumpsum Billing on Per Head Basis<br> Query (Issue) Started By: - Sagar Phadke Dated:- 3-7-2020 Last Reply Date:- 11-7-2020 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Facts - A Restaurant has come up with a scheme for customer. If a group of say 50 persons (for example) makes booking on particular day and time, they are charged at say ₹ 1000/- per ....
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....person (for example) with unlimited food available in that amount, and say ₹ 1000/- per person (for example) with unlimited liquor available in that amount. While the group / party goes on various food beverage or liquor orders are punched for actual billing internally for record purpose, however the final bill is raised as follows - Food & Bev Package = ₹ 1000 x Qty 50 / Total 500....
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....00 + 5% GST = 52500/- Liquor Package = ₹ 1000 x Qty 50 / Total 50000 + 5% VAT = 52500/- Actual value of the actual consumption and supplies as per the card rates (for example F & B ₹ 35000/- and Liquor say ₹ 25000/-) may be higher or the lower than the above-said billed figures. Issues - a) What are the supplies / services involved in this transaction ? Supply of the food,....
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.... beverages (restaurant) & liquor ?? If yes would the entire consideration as per, per head charge would get appropriated towards the actual supplies made ? b) Would, making available a party booking by itself be treated as separate service? What would be the supply, its consideration and valuation in such case ? My opinion - Supply made F & B (at actual Card rate ₹ 35000/-) considerat....
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....ion as per contract ₹ 50000/- Supply made of Liquor (at actual Card rate ₹ 25000/-) consideration as per contract ₹ 50000/- Reply By Rajagopalan Ranganathan: The Reply: Sir, As per your query the rate of ₹ 1000/- per head is for unlimited supply of F & B and liquor. However, the card rate of ₹ 35000/- is with reference to quantum of F & B consumed and card Rate o....
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....f ₹ 25000 is for the quantum of liquor consumed. The party who pays ₹ 1000/- per head is not bothered whether the supply made is valued at ₹ 35000/- or less but as per contract the party has to pay ₹ 1000/- per head. In my view gst is payable on the contract value of supply ,irrespective of the fact the value of the quantum of F & B and liquor consumed is less than or more ....
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....than the contract value. You have to pay gst on the contract value of ₹ 1000/- per head mutiplied by the number of persons participated in the party. Reply By Sagar Phadke: The Reply: Yes Sir I have also expressed same opinion @ supply value 50K each. My fear was, if some officer would creatively think that this is a different kind of service and hence taxable at 18% Regards Reply By ....
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....DR.MARIAPPAN GOVINDARAJAN: The Reply: Yours is restaurant service liable to 5% tax under GST laws. Liquor is not coming under GST. You have also billed separately for these two supplies. Therefore there is no question of higher rate of tax. I endrose the views of Shri Renganathan. Reply By Mahir S: The Reply: Yes, both the views expressed by learned persons are correct in the present case. Rep....
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....ly By KASTURI SETHI: The Reply: I support the views of all experts.<br> Discussion Forum - Knowledge Sharing ....