GST Rates on Hotel Room rent and Accommodations

Q. 1 ( a) Will GST be charged on actual tariff or declared tariff for accommodation services?

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

(c) Where will the declared tariff be published?

(d) 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?

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

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

Ans. ( a) 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).

(b) 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. 7,000/- per unit per day but the amount charged from the customer on account of extra bed is Rs. 8,000/-, GST shall be charged at 18% on Rs. 8,000/-.

(c) 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.

(d) 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.

(e) Declared tariff at the time of supply of this service would apply.

(f) If declared tariff of the accommodation provided by way of upgrade is Rs. 10,000/-, but amount charged is Rs. 7,000/-, then GST would be levied @ 28% on Rs. 7,000/-.

Q.4 (a) Whether for the purpose of entries at SI. Nos. 34(ii) [admission to cinema] and 7(ii)(vi)(viii) [Accommodation in hotels, inns, etc.], of notification 11/2017-CT (Rate) dated 28th June 2017, price/declared tariff includes the tax component or not?

(b) Whether rent on rooms provided to in-patients is exempted? If liable to tax, please mention the entry of CGST Notification 11/2017-CT(Rate).

Ans. (a) Price/declared tariff does not include taxes.

(b) Room rent in hospitals is exempt.

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