Hotel & Resturant services, Goods and Services Tax - GST

[DIVYAM JAIN]

What are the provisions & rate applicable for hotel & Resturant industry

Wharther a Service Reciepient can take credit for amount paid to hotels

Who can charge tax@5% and who can charge @18%

Posts / Replies

[HIREGANGE& ASSOCIATES]

1. Rate applicable for standalone Restaurant service is 5% ;

2. Restaurant service located in a Hotel having the room charges <7500 per unit per day - 5% ; > 7500 - 18%

3. Hotel Room Charges - <1000 - Exempted; 1000-2500 - 12%; 2500-7500 - 18% ; >7500 - 28%

4. Service recipient of Hotel service is eligible for credit, if the located in the same state.

5. Service recipient of Restaurant service used for further supply of Restaurant service - Eligible ; Service recipient of Restaurant service used for other purpose - not eligible.

Regards

Sudhir V S

sudhir@hiregange.com