TMI BlogRate of tax for hotel accommodation – after 37th GST Council’s recommendationX X X X Extracts X X X X X X X X Extracts X X X X ..... Rate of tax for hotel accommodation – after 37th GST Council’s recommendation - By: - Shilpi Jain - Goods and Services Tax - GST - Dated:- 30-9-2019 - - The rate of tax for the accommodation services up to 30 th Sep 19 is as below: Old rate Transaction value per unit per day GST (new rate of tax) Less than INR 1,000 (per unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Nil INR 1,000 to INR 2,499 12 percent INR 2,500 to INR 7,499 18 percent INR 7,500 and more 28 percent As per the recommendation of the GST Council in its 37 th meeting at Goa , the following would be the rate of tax for the accommodation services pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided from 1 st Oct 19. New rate Transaction value per unit per day GST (new rate of tax) INR 1,000 and less (per unit) Nil INR 1,001 to INR 7,500 12 percent INR 7,501 and more 18 percent In this regard the following are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the guidelines for the suppliers i.e. hotels to identify the rate of tax to be charged (which is in line with section 14 of the CGST Act, 2017 ) for the accommodation services. In case a guest stays at the hotel and checks out on or before 30 th Sep 19, the service is supplied before the rate change and thereby the rate of tax for the accommodation services provided would be as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Table1 S. No. Issue of invoice Receipt of payment Time of supply Applicable GST rate structure 1 After 30 th Sep 19 After 30 th Sep 19 Receipt of payment or invoice, whichever is earlier New rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 On/before 30 th Sep 19 After 30 th Sep 19 Date of issue of invoice Old rates 3 After 30 th Sep 19 On/before 30 th Sep 19 Date of payment Old rates In case a guest checks into the hotel after 30 th Sep 19, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the service is supplied after the rate change and thereby the rate of tax for the accommodation services provided would be as under. Table 2 S. No. Issue of invoice Receipt of payment Time of supply Applicable GST rate structure 4 On/before 30 th Sep 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After 30 th Sep 19 Date of payment New rates 5 On/before 30 th Sep 19 On/before 30 th Sep 19 Receipt of payment or invoice, whichever is earlier Old rates 6 After 30 th Sep 19 On/before 30 th Sep 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date of issue of invoice New rates In case if the guest checks in, on or before 30 th Sep 19 and checks out after such date - on reference to section 14 of the CGST Act, it can be seen that the critical aspect to be answered in such a case is whether the service has been supplied before the rate change or not. Whether it can be said that each da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is a separate supply of service or whether the entire period of continuous stay by the guest is one supply. It can be argued that the scope of service to the guest is the period of stay agreed i.e. starting on or before 30 th Sep 19 and ending after such date, in which case the supply of service would be said to be done after 30 th Sep 19 only. Hence the rate of tax as per Table 2 will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have to be followed. However, taking a conservative view in such case, in these kind of situations the hotel could look at treating each day as a separate supply and charge GST as below: Charge GST as per Table 1 above for the days the guest stayed before 1 st Oct 19, and Charge GST as per Table 2 above for the days the guest stayed on or after 1 st Oct 19. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, it would be suggested to wait and see if further clarity in this regard is provided in the notification that would be issued effecting this rate change. For any further queries/comments please write to shilpijain@hiregange.com. - Reply By Ganeshan Kalyani as = Useful write-up. Thanks for sharing with the reader. Dated: 30-9-2019 Reply By Ganeshan Kalyani as = It is also requested t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the council to look into the difficulty in claiming credit related to hotel stay when the employee travel to another state in search of the possible business. It is also in the case of conference held in another state where the business does not have registration the claim of credit become next to not possible. Considerable credit becomes cost. Dated: 30-9-2019 - Scholarly articles for know ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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