TaxTMI 
TaxTMI 
FAQs for clarifying various aspects of 'specified premises' in the context of supply of restaurant services.
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....nal Tax Authorities. The revised definition of 'specified premises' has come into force with effect from 01/04/2025 as notified vide Notification No. 38/1/2017-Fin(R&C)(05/2025-Rate)/47 dated 16.01.2025, published in the Extraordinary Official Gazette No. 2, Series I, No. 42 dated 16/01/2025. This GST Trade Circular is issued for circulating the above said FAQs among all the stake holders and the trade and industry. The FAQs are enclosed herewith as Annexure to this Trade Circular. All Stake holders are requested to make use of the FAQs for clarifying their doubts. Given under the seal of this office S. S. Gill, IAS, Commissioner of State Tax, Goa. Frequently Asked Questions on 'Restaurant Service' supplied at 'Specified Premises' Sl. No. Question Answer 1 2 3 1. What do you mean by 'specified premises'? W.e.f. 01.04.2025, the definition of specified premises shall be as under: "Specified premises", for a financial year, means,- (a) a premises from where the supplier has provided in the preceding financial year, 'hotel accommodation' service having the value of supply of any unit of accommoda....
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....period starting from 01.04.2025, the value of supply of hotel accommodation in the previous FY, i.e., the transaction value charged for the said supply, would be the basis for determining whether the premises providing hotel accommodation service mandatorily falls under the category of 'specified premises' or not in the current FY. The revised definition of 'specified premises', to be brought into effect from 01.04.2025, has been worded accordingly. 4. What is the objective of the change in the definition of specified premises with effect from 01.04.2025, as notified vide Notification No. 05/2025-Central Tax(Rate) dated 16.01.2025? The said change is being brought about with the following objectives: (a) to replace the notion of 'declared tariff' with 'value of supply' (i.e. transaction value) in the definition of specified premises, since the GST rate applicable to supply of hotel accommodation service is also dependent on the value of supply only, in view of the fact that the hotel industry has largely moved to a dynamic pricing model. (b) to make the 'specified premises' status of a premises providing hotel accommodation ser....
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....ut part of his mall premises to a supplier of hotel accommodation service as well as to other multiple restaurants operating from his/her mall, would not be eligible to file this declaration as he himself is not a supplier of hotel accommodation service. The supplier of hotel accommodation service operating in this mall can declare the premises from which hotel accommodation services are supplied as a specified premises. This will make the restaurants located in the said hotel premises liable to pay tax at the rate of 18% with ITC. Restaurants located in the mall, but outside the said hotel premises, will not be affected by this declaration, and will continue to pay GST at the rate of 5% without ITC. 6. What will be the validity of the above declarations? In order to facilitate ease of compliance, the 'opt-in' declarations (Annexures-VII and VIII of Notification No. 11/2017-CT(Rate)) will be valid until the taxpayer decides to 'opt-out' by filing a declaration in Annexure IX of the same Notification declaring that the premises shall not be a 'specified premises'. This 'opt-out' declaration shall have to be filed between 1st January and 31st ....
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.... In case I have not supplied any unit of accommodation at value above Rs. 7,500/- in the current financial year, and I still want to fall under the scope of 'specified premises' for the next Financial Year, how can I do so? You can do so by filing a declaration (Annexure VII of notification No.11/2017-CTR dated 28.06.2017) between 1st January and 31st March of the current financial year. 9. What will be the modality of filing the above declarations? The declarations for FY 2025-26 shall be filed physically/manually before the jurisdictional GST authorities till the time electronic filing of these declarations is enabled. 10. Can I email/post my declaration to the jurisdictional authority? Yes. You are allowed to submit the declaration forms through email or post. In such case, dated acknowledgement shall be issued to you in the same mode. 11. Do I (supplier of hotel accommodation service) need to file a declaration every year to continue to function as a 'specified premise'? (i) For registered persons supplying hotel accommodation service No. Once a declaration as per Annexure VII is filed in the preceding year, the said declarati....
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....; for the current financial year and no declaration needs to be filed for such premises. 14. I am a supplier of hotel accommodation service having multiple premises under a single GST registration. In FY 2025-26, I have supplied a unit of accommodation having value of supply more than Rs. 7,500 from only one such premises. Will all of my premises automatically and mandatorily become specified premises for the next FY, i.e. FY 2026-27? No, only that premise from which you have supplied a unit of accommodation having value of supply more than Rs. 7,500 will automatically and mandatorily become a specified premises for FY 2026-27. This will not affect the 'specified premises' status of your other premises. 15. I am a registered supplier of hotel accommodation service and have started providing hotel accommodation services from a new premises which I intend to operate as a 'specified premises'. Which declaration should I file? For a new premises providing hotel accommodation service being set up by a registered supplier of hotel accommodation service, which the supplier wishes to operate as a 'specified premises', the person shall have to file ....
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.... inside the premises from where I supply hotel accommodation service for which I have filed a declaration as per Annexure VII, and Restaurant 'Y' not located inside the said premises, but located in the same mall. What would be the applicable GST rate for restaurant service supplied by restaurant 'X' and restaurant 'Y'? The address of the premises providing hotel accommodation service inside the mall, declared in Annexure VII filed by the supplier of hotel accommodation service, becomes a 'specified premises' by virtue of the declaration filed. Restaurants located inside the said address have to charge GST @18% for restaurant services being supplied from 'specified premises'. Therefore, Restaurant 'X' shall have to charge GST @18% with ITC for their restaurant services. Restaurant 'Y' is not located within the address declared by the supplier of hotel accommodation service who has filed Annexure VII. Therefore, restaurant 'Y' is not located in the 'specified premises' and therefore, shall have to charge GST @ 5% without ITC for their restaurant services. 19. I have filed Annexure VIII declaring my prem....
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.... However, in order to enable filing of declarations for FY 2025-26, the opt-in and opt-out declarations, have been brought into effect from 16.01.2025 vide Notification No. 05/2025-CT(Rate) dated 16.01.2025. This declaration (Annexure VII) can be filed physically/manually before the jurisdictional authority anytime till 31st March, 2025. The option to opt-out, in case of change in decision, also can be filed before 31st March, 2025 before the jurisdictional authority. For a person, who has applied for or has obtained registration during the period 16th January, 2025 to 31st March, 2025, the person shall have to file declaration (Annexure VIII) before the jurisdictional authority anytime between 16th January, 2025 and 31st March, 2025. Annexure VIII in this case would apply for the subsequent FY i.e., FY 2025-26 and would not be applicable for FY 2024-25, as the revised definition of 'specified premises' shall come into force only from FY 2025-26 onwards. Further, once opted in for FY 2025-26 by filing Annexure VIII, such person shall not be able to opt-out for the FY 2025-26. For a person who has applied for registration after 01st April, 2025, s/he shall hav....