TaxTMI 
TaxTMI 
GST ON EXTRA BED
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....ST ON EXTRA BED<br> Query (Issue) Started By: - VIPUL JAIN Dated:- 31-3-2023 Last Reply Date:- 1-4-2023 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Hello Fellow Professionals, I have a query with respect to GST rate to charged on extra bed : Example: Room rent charged : Rs. 7000.00 GST rate would be 12%, however due to extra bed provided to guest we have charged Rs. 1000.00, now my q....
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....uestion is what would be the GST rate on that extra bed, will it be 12% considering it to be composite supply? or will it be 18% considering that actual rent charged is above Rs. 7500.00? Reply By Amit Agrawal: The Reply: There are no two different supplies are involved here. Only one supply of 'Hotel Accommodation' is involved. Relevant entry No. 7 (i) of Notification No. 11/2017-Cen....
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....tral Tax (Rate) (as amended till date) & carrying tax-rate of 12% (i.e. 6% + 6%), reads as follows: "Supply of 'hotel accommodation' having value of supply of a unit of accommodation 135[****] less than or equal to seven thousand five hundred rupees per unit per day or equivalent." In given case, value of supply of a unit of accommodation is Rs. 8,000/- (i.e. Rs. 7,000/- plus Rs. 1,000....
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....) per day. Hence, tax-rate @ 12% will not apply and applicable tax-rate will be 18%. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Padmanathan Kollengode: The Reply: I agree with views of Amit Ji. Here, since the value of supply" of unit of accommodation exceeds Rs. 7,500/- applicable rate will be 18% on entire Rs.8,000/....
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....-. Reply By Shilpi Jain: The Reply: Agreed. As per your query, regarding it as a composite supply also the value of supply will be more than 7500 and thereby 18% GST Reply By KASTURI SETHI: The Reply: Dear Sh.Vipul Jain, Note the word, 'extra' mentioned in the heading of your query itself. This word conveys clear message. Extras are things which are not necessary in a situation, acti....
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....vity, or object, but which make it more comfortable, useful, or enjoyable. Extra means additional, supplementary etc. Hence it cannot be a composite supply. A composite supply cannot be separated but here 'extra bed' is separatable. Therefore, no concessional rate can be 'enjoyed' in the 'guise' of a composite supply.<br> Discussion Forum - Knowledge Sharing ....