Page 184 - GSTL_7th May 2020_Vol 36_Part 1

142 GST LAW TIMES [ Vol. 36
modation and the rest optional facilities are procured after checking
in at the hotel?
(ii) If the answer to query No. 1 results in liability to pay GST as in tariff
being lesser than Rs. 7,500/-, whether the applicant will be liable to
pay 5% GST on restaurant services to the guest who stays at hotel as
well as to any outsider who comes just to eat at the restaurant and
not 18% GST in terms of Notification No. 46/2017-Central Tax
(Rate)?
(iii) If the applicant is charging money towards room stay, breakfast,
airport pick up and drop, as well as extra bed plus meals i.e. the
package covers everything and individual value is not assigned at
the time of booking but when invoice is given to the customer there
is a specific mention of each item and separate value assigned to
each service, and the sum total exceeds Rs. 7,500/-, what would be
the liability of GST i.e. the price offered to customer represents a
package offering a bouquet of services?
(iv) If the answer to query No. 3 results in liability to pay GST as in tariff
being lesser than Rs. 7,500/-, whether the applicant will be liable to
pay 5% GST on restaurant services to the guest who stays at hotel as
well as to any outsider who comes just to eat at the restaurant in
terms of Notification No. 46/2017-Central Tax (Rate) and not 18%
GST?
(v) During the financial year, on account of low season, the tariff re-
mains below Rs. 7,500/-. However in peak season, the room tariff
exceed Rs. 7,500/-, then in this situation, whether the liability of the
applicant to pay GST at 18% on restaurant arises from inception or
from the day the tariff exceeds Rs. 7,500/- and it falls back to 5% as
soon as the tariff falls below Rs. 7,500/-?
(vi) The applicant has certain lower category of rooms wherein the tariff
at which they are sold at includes break-fast. In this scenario, what
will be the liability to pay GST on room tariff and breakfast in the
event the applicant is liable to pay only 5% GST on restaurant ser-
vices as tariff falls below Rs. 7,500/- and low category rooms are
sold at Rs. 3,400/-?.
2. At the outset, we would like to make it clear that the provisions of
both the CGST Act and GGST Act are the same except for certain provisions.
Therefore, unless a mention is specifically made to any dissimilar provisions, a
reference to the CGST Act would also mean a reference to the same provision
under the GGST act. Further to the earlier, henceforth for the purpose of this Ad-
vance Ruling, the expression ‘GST Act’ would mean CGST Act and GGST Act.
3. Applicant’s Opinion
In their opinion, the Notifications issued in relation to the rate of 5% GST
on restaurant are ambiguously worded. Before entering the labyrinth of queries,
the applicant would like to refer to certain definitions provided under GST Act,
clarifications issued and certain relevant parts of Notification.

GST LAW TIMES  7th May 2020  184