Question ID :
36960
Rate of Tax on Hotel Industry
Supplier engaged in Hotel industry where food and rooms are given and also supplies liquor. Hotel has tariff ranging from 1000 to 8000.
query 01. Rate of GST on Food whether 5% or 18%
query 02. what is the base for common Input Tax Credit reversal as there is liquor supply i.e Non GST Supply.
query 02. Can Hotel charge GST on food @5% where tariff is less than Rs.7,500.00 and 18% on food where tariff rate is more than Rs.7,500.00 in same hotel. if yes how ITC to be reversed to the extent of 5% food rate charged to customer.
Posted by
Sachin
on
Feb 02, 2019
Filed Under
GST
Answer ID :
76297
1. As per the Notification No. 46/2017-Central Tax (Rate), tariff of any single unit (room) of a hotel is more than 7499/per day, then they should charge 18% on Food & Beverages other than liqour with Full ITC.
2. On the ratio of Taxable turnover and NON GST turnover during the relevant month. (Further this needs be computed annually before filing of Sept month return)
3. No. The hotel shall charge either 18% or 5%. These are mutually exclusive clause.
4. Since the rate of 5% GST is not applicable in your case, no need reverse ITC.
Posted by
Rajesha L on
Feb 20, 2019