Question ID :
29630
GST on Lodges
Dear Colleagues,
An entity is undertaking Lodging business. It has rooms below declared tariff of Rs 1000. As such it was awailing exemption vide entry no.14 of CGST-Rate Notfication 122017. Now the company has outsourced managing of about 20 rooms in the whole property to another business entity for a consolidated monthly rental of 2,50,000.Whether the said monthly rental is liable for GST? Or can it be exempt under Notfication 122017 as per day per room rental would be around Rs 420
Posted by
Prashanth Karanth
on
May 09, 2018
Filed Under
GST
taxable as the invoice will be raised monthly
Posted by
VINAY BHARGAV KUMAR G on
May 10, 2018
Answer ID :
66626
i think it will not come under exemption.
Posted by
CA. RACHIT JAIN on
May 11, 2018
Answer ID :
66627
this is taxable as it is not the room rent charges.
Posted by
CA. SATISH CHAND GARG on
May 11, 2018
Answer ID :
68678
Under the given case, the exemption worded "services provided by hotel for residential purpose" would not satisfied.
Additionally, the said transaction may be viewed grant of right to manage 20 rooms for a wholesome consideration, which definitely doesnt fall in the above exemption ambit.
Posted by
SACHIN AGARWAL on
May 25, 2018
Answer ID :
68684
The wordings are contradictory. When anyone outsource any of the business process then he is supposed to pay for that outsourcing. Whereas, here i am going to receive the amount.
Normally in hotel industry the landowner prepares these type of agreement, so that implication of TP Act remains least. ie wording the leasing of immovable property agreement into licensing or managing or operating agreement.
In substance, it is rendition of immovable property and exemption under Entry 14 shall not be available.
Posted by
Jatin Harjai on
May 25, 2018