Zirakpur

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GST rate for Accommodation services are provided in N/N CGST-R-11/2017 and CGST-R-12/2017. In India, GST rates are provided under different slabs on the basis of paying capacity of tenants/guests. High spending means higher rate of tax. GST rate for normal and luxury living are kept in different slabs. Following is the summary of the rate schedule for accommodation sector according to situation:-

S. No.

Situation CGST SGST/UTGST
1

Services by way of renting of residential dwelling for use as residence.

Nil

Nil

2

Services by a person by way of conduct of any religious ceremony

Nil

Nil

3

Services by a person by way of conduct of renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act:

Provided that nothing contained in this entry shall apply to:

(i) renting of rooms where charges are Rs 1,000/- or more per day;

(ii) renting of premises, community halls, kalyanmandapam or open area, and the like where charges are Rs 10,000/- or more per day;

(iii) renting of shops or other spaces for business or commerce where charges are Rs 10,000/- or more per month.

Nil

Nil

4

Services provided by an educational institution to its students, faculty and staff

(i.e. Hostel/Accommodation facility provided by an educational institution)

Nil

Nil

5

Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes (including the supply of time share usage rights by way of accommodation) :-

(a)    having *{declared tariff value of supply} of a unit of accommodation below Rs 1000/- per day or equivalent

6% (w.e.f. 18.07.2022)

Nil (till 17/07/2022)

6% (w.e.f. 18.07.2022)

Nil (till 17/07/2022)

(b)   having *{declared tariff value of supply} of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent

(= > Rs 1000 < Rs 2500)

6%

 

6%

 

(c)    having *{declared tariff value of supply} of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent

(= > Rs 2500 < Rs 7500)

 

w.e.f. 01/10/2019 = 6%

{before 01/10/2019 = 9%}

 

w.e.f. 01/10/2019 = 6%

{before 01/10/2019 = 9%}

(d)   having *{declared tariff value of supply} of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent

( = > Rs 7500)

w.e.f. 01/10/2019 = 9%

{before 01/10/2019 = 14%}

 

w.e.f. 01/10/2019 = 9%

{before 01/10/2019 = 14%}

 

6  Rental or leasing services involving own or leased non-residential property  9%  9%

7

 

 

 

 

Jumbled Supply of Food plus renting of premises in together

Supply, by way of or as part of any service or in any other manner whatsoever, of goods, including but not limited to food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), where such supply of service is for cash, deferred payment or other valuable consideration, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) together with renting of such premises.

{ However such premises should not be a specified premise and suppliers supplying food/beverages should not be :-

(a) suppliers providing “hotel accommodation” at “specified premises”, or

(b) suppliers located in “specified premises”. }#

# inserted w.e.f. 01/10/2019

w.e.f. 01/10/2019 = 2.5%

{before 01/10/2019 = 9%}

Provided that credit of input tax charged on goods and services used in supplying the service has not been taken

 

w.e.f. 01/10/2019 = 2.5%

{before 01/10/2019 = 9%}

Provided that credit of input tax charged on goods and services used in supplying the service has not been taken

* amended w.e.f. 27 July 2018

Meaning of Educational Institution:

Educational institution” means an institution providing services by way of-

  1. Pre-school education and education up to higher secondary school or equivalent;
  2. education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
  3. Education as a part of an approved vocational education course.

Following definitions inserted w.e.f. 01/10/2019:-

Meaning of “Specified premises” :-

“Specified premises” means premises providing “hotel accommodation” services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.”.

Meaning of “Declared Tariff” :-

“Declared tariff” means charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

Meaning of “Hotel Accommodation” :-

“Hotel accommodation” means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation.


Various FAQs on Accommodation Sector

Will GST be charged on actual tariff or declared tariff for accommodation services?

Declared or published tariff is relevant only for determination of the tax rate slab. GST will be payable on the actual amount charged (transaction value).

What will be GST rate if cost goes up (more than declared tariff) owing to additional bed?

GST rate would be determined according to declared tariff for the room, and GST at the rate so determined would be levied on the entire amount charged from the customer. For example, if the declared tariff is Rs. 7000 per unit per day but the amount charged from the customer on account of extra bed is Rs. 8000, GST shall be charged at 18% on Rs. 8000.

What will be GST rate if cost goes up  owing to additional bed?

GST rate would be determined according to value of service for the room, and GST at the rate so determined would be levied on the entire amount charged from the customer. For example, if the Vale of service is Rs. 7000 per unit per day but the amount charged from the customer on account of extra bed is Rs. 8000, GST shall be charged at 18% (28% before 01.10.2019) on Rs. 8000.

Where will the declared tariff be published?

Tariff declared anywhere, say on the websites through which business is being procured or printed on tariff card or displayed at the reception will be the declared tariff. In case different tariff is declared at different places, highest of such declared tariffs shall be the declared tariff for the purpose of levy of GST.

Same room may have different tariff at different times depending on season or flow of tourists as per dynamic pricing. Which rate to be used then?

In case different tariff is declared for different seasons or periods of the year, the tariff declared for the season in which the service of accommodation is provided shall apply

If tariff changes between booking and actual usage, which rate will be used?

Declared tariff at the time of supply would apply.

GST at what rate would be levied if an upgrade is provided to the customer at a lower rate?

If declared tariff of the accommodation provided by way of upgrade is Rs 10000, but amount charged is Rs 7000, then GST would be levied @ 28% on Rs 7000/-.


SAC Codes applicable for Accommodation Sector

SAC Codes for Accommodation sector falls in Heading 9963. There are two groups under this heading : 99631 and 99632. All the codes are bifurcated under these two groups in following manner:-

Group 99631  Accommodation services
996311 Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like
996312 Camp site services
996313 Recreational and vacation camp services
Group 99632  Other accommodation services
996321 Room or unit accommodation services for students in student residences
996322 Room or unit accommodation services provided by Hostels, Camps, Paying Guest and the like
996329 Other room or unit accommodation services nowhere else classified
Group 99721  Real estate services involving owned or leased property 
  997212 Rental or leasing services involving own or leased non-residential property

Comments

  1. Dear Sirs,
    When a Residential Building used as PAYING GUEST HOUSE. SHOULD THE OWNER COLLECT GST AND PAY THE SAME . Please give me a detailed reply with any case laws in support of your answer.

    Regrads,
    K.B.NAGESHA RAO

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