Page 183 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : MANGALDAS MEHTA AND CO. LIMITED 141
allowed]; (c) Declared room tariff from ` 2,500 up to ` 7,499 : GST @ 18% [ITC
allowed]; and (d) Declared room tariff from ` 7,500 and above : GST @ 28%
[ITC allowed]. [para 11]
Supply of Food and Beverage services by restaurants in hotel premises
- GST Rate to be determined according to declared tariff for the room, and
GST at the rate so determined would be levied on the amount separately
charged, for services of breakfast, lunch and dinner, from the guest/customer -
Classifiable under HSC Code 9963 32 - According to declared room tariff, rate
of GST for said services will be as under : (i) Restaurants in hotel premises
having room tariff of less than ` 7,500 per unit per day will attract GST of 5%
without ITC (ii) Restaurants in hotel premises having room tariff of ` 7,500
and above per unit per day (even for a single room) will attract GST of 18%
with full ITC. [para 12]
Airport Pickup and Drop service - Classifiable as ‘Passenger Transport
services’ by motorized taxi within or between urban and suburban areas under
HSC Code 9964 12 and liable to pay GST @ 18% with ITC. [para 13.1]
Laundry services and Heritage Walk services - Such services being
nowhere else classified in GST Acts, classifiable as ‘other services’ under HSC
Code 9997 99 - Rate of GST will be 18% with ITC. [para 14.1]
Supply of Accommodation, Food and Beverage services - Different
room tariff declared for different seasons or periods of the year - GST rate
would be determined according to declared tariff for the room, and GST at the
rate so determined would be levied on the amount charged for restaurant ser-
vices from the guest/customer. [para 15(5)]
Supply of Accommodation, Food and Beverage services - Different tar-
iff declared for rooms - Highest of such declared tariffs shall be the declared
tariff for the purpose of levy of GST - Applicant liable to pay GST @ 28% on
amount charged for room including breakfast (i.e., ` 3,400) from guest if de-
clared tariff of any unit of accommodation is ` 7,500 and above per unit per
day or equivalent. [para 15(6)]
Ruling in favour of department

DEPARTMENTAL CLARIFICATION CITED
C.B.E. & C. Circular No. 27/01/2018-GST, dated 4-1-2018 ..................................................... [Paras 3, 4, 10]
REPRESENTED BY : Shri Soham Mashruwala, for the Assessee.
[Order]. - Proceedings : The present application has been filed under Sec-
tion 97 of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods
and Services Tax Act, 2017 (hereinafter referred to as “the CGST Act” and GGST
Act”) by M/s. Mangaldas Mehta and Co. Limited, House of MG, Opp. Siddi Sai-
yed Jali, Lal Darwaja, Ahmedabad, Gujarat-380001, the applicant, seeking an ad-
vance ruling in respect of the following question :
(i) Whether the invoice of the applicant containing items reflecting
charges towards room stay, service charge, breakfast, airport pick
up and drop, extra bed form a part of tariff in order to ascertain the
rate of GST as per the slabs provided under Notification No.
11/2017-Central Tax (Rate) i.e. what will be the liability to pay GST
i.e. to say that declared tariff represents only the charges for room
stay plus service charge and the customer books only hotel accom-

GST LAW TIMES  7th May 2020  183