GST on Hotel Accommodation (GST on Restaurant Food)

GST on Hotel Accommodation and GST on Restaurant Food have been covered below. We have given detailed explanation on GST Rate on Hotel Accommodation Services like Renting Rooms and also GST on Food Served in Restaurants, Food Served to the tenant’s Room (In Room Dining), GST on Liquor Served in Restaurants and Hotels etc. In our earlier article, we have already provided more details on GST on LIC Policy. GST on GST on Hotel Accommodation and GST on Restaurant Food is one of the most trending topics currently.

GST on Hotel Accommodation & GST on Restaurant Food (Highlights)

Rent < Rs.1,000 Exempt
Food in Restaurant 18%
5 Star Hotel Accommodation 28%

Prelude : GST on Hotel Accommodation & GST on Restaurant Food

The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. With the increase in tourism hospitality industry has the vital role to attract the foreign tourist. With the implementation of GST, it is important to know the provisions that will affect the hotel industry.

General Hotel Services : GST on Hotel Accommodation & Restaurant Food

  1. Room accommodation services.
  2. Serving of foods and liquor in restaurant and in room.
  3. Rent a cab.
  4. Mandap keeper.
  5. Banking and financial services like foreign currency exchange.
  6. Supply of packed food items as mini bar.
  7. Renting out the premises for events, conferences etc.
  8. Catering.
  9. Laundry services.
  10. Business support services.
  11. Telecommunication services like telephone, fax, wifi.
  12. Beauty parlour
  13. Gymnasium services.
  14. Club Facility.

Now it is important to know the tax rates:

Room Accommodation Services

S. No.

Services

Rate of Tax under GST

1.

Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation less than one thousand rupees per day or equivalent

Exempted Services.

2.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day.

12% with ITC Credit.

3.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/ and above but less than Rs 7500/- per room per day.

18% with ITC Credit.

4.

Accommodation in hotels including 5 star and above  rated  hotels,  inns,  guest  houses, clubs, campsites or other commercial places  meant  for  residential  or  lodging purposes, where room rent is Rs 7500/- and above per night per room.

28% with ITC Credit.

Serving of Food and Liquor in Restaurants and In Room Dining

S. No.

Services

Rate of Tax under GST

1.

Supply of Food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having licence to serve liquor.

12% with ITC Credit.

2.

Supply of Food/drinks in restaurant having licence to serve liquor.

18% with ITC Credit.

3.

Supply of Food/drinks in restaurant having facility of air-conditioning or central heating at any time during the    year.

18% with ITC Credit.

4.

Supply of Food in catering service

18% with ITC Credit.

5.

Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel

18% with ITC Credit.

Point to be Noted:

  1. Serving of Alcoholic drinks will be outside the preview of GST and local sales tax or VAT shall be applied on the same.
  2. It is advisable for the hotel to issue the separate bills for alcoholic drinks and foods.

RENT A CAB

1.

Rent a cab (If fuel cost is borne by the service provider)

5% with No ITC.

ITC shall be available if cab is booked from other cab operator.

2.

Rent a cab (If fuel cost is borne by the service recipient)

18% with ITC Credit.

MANDAP KEEPER

1.

Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged  for  organizing  a function) together with renting of such premises.

18% with ITC Credit.

FORIEGN CURRENCY EXCHANGE SERVICES

1.

In case of currency exchange to its guest

18% with ITC Credit, but valuation shall be done as per valuation rules

 

Value of Currency Involved (in INR)

0 to 1,00,000/-

1% or Rs. 250/- whichever is higher.

1,00,001/- to 10,00,000/-

1,000/-+ 0.5%

10,00,00/- and above

5,000/-+0.10% or Rs. 60,000/- whichever is lower.

 

SUPPLY OF PACKED FOOD IN MINI BAR

Supply of packed food in mini bar

Rate shall be as per product rate.

Renting out the premises for events, conferences

Renting out the premises for events, conferences

18% with ITC Credit.

Other Services

1.

18% with ITC Credit.

2.

Laundry services

18% with ITC Credit.

3.

Business support services

18% with ITC Credit.

4.

Telecommunication services like telephone, fax, wifi.

18% with ITC Credit.

5.

Beauty parlour

18% with ITC Credit.

6.

Gymnasium services

18% with ITC Credit.

7.

Club Facility.

18% with ITC Credit.

Conclusion : GST on Hotel Accommodation & GST on Restaurant Food

This detailed article on ‘GST on Hotel Accommodation and GST on Restaurant Food’ have been contributed by Mr.Ramesh Jain. If readers have any further queries on the topic of ‘GST on Hotel Accommodation and GST on Restaurant Food’, post your questions below through our comments section.

1 COMMENT

  1. sir
    what will we charge in room food service
    we dont charge room service of any kind
    our hotel is in a mid tire segment with 40 rooms
    can u help me out in this regard
    thanks
    suman bhattacharjee
    hotel executive inn
    tripura
    9436122077