Page 186 - GSTL_7th May 2020_Vol 36_Part 1

144 GST LAW TIMES [ Vol. 36
where such supply or service is for cash, deferred payment or other valua-
ble consideration, provided by a restaurant, eating joint including mess,
canteen, whether for consumption on or away from the premises where
such food or any other article for human consumption or drink is supplied,
other than those located in the premises of hotels, inns, guest houses, clubs,
campsites or other commercial places meant for residential or lodging pur-
poses having declared tariff of any unit of accommodation of seven thou-
sand five hundred rupees and above per unit per day or equivalent shall at-
tract central tax @2.5% without any input tax credit under item (i) above
and shall not be levied at the rate as specified under this entry.”
Certain definitions :-
• Definition of declared tariff :
Under the GST Act, declared tariff for hotel accommodation is de-
fined in Notification No. 46/2017-CGST (Rate) which reads as fol-
lows :-
“declared tariff includes charges for all amenities provided in
the unit of accommodation (given on rent for stay) like furni-
ture, air-conditioner, refrigerators or any other amenities, but
without excluding any discount offered on the published charg-
es for such unit.
• Definition of Composite supply :
Section 2(30) defines Composite Supply and it reads as follows :-
(30) “composite supply” means a supply made by a taxable
person to a recipient consisting of two or more taxable supplies
of goods or services or both, or any combination thereof, which
are naturally bundled and supplied in conjunction with each
other in the ordinary course of business, one of which is a prin-
cipal supply.
• Definition of Mixed Supply :
Sec 2(74) defines Mixed Supply and it reads as follows :-
(74) “mixed supply” means two or more individual supplies
of goods or services, or any combination thereof, made in con-
junction with each other by a taxable person for a single price
where such supply does not constitute a composite supply.
Clarification issued :
• Circular Number 27/2018-GST F. No. 354/107/2017-TRU
The Hon’ble Ministry of Finance has issued a circular whereby cer-
tain clarifications have been made and the relevant extract of the
same is reproduced below :-

Sr. Questions/Clarifications Clarifications
No. Sought
1 1. Will GST be charged on 1. Declared or published tariff is
actual tariff or declared relevant only for determination of
tariff for accommodation the tax rate slab. GST will be pay-
services? able on the actual amount charged
(transaction value).

GST LAW TIMES  7th May 2020  186