Page 187 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : MANGALDAS MEHTA AND CO. LIMITED 145
2. What will be GST rate if 2. GST rate would be determined
cost goes up (more than according to declared tariff for the
declared tariff) owing to room, and GST at the rate so de-
additional bed. termined would be levied on the
entire amount charged from the
customer. For example, if the de-
clared tariff is Rs. 7000 per unit per
day but the amount charged from
the customer on account of extra
bed is Rs. 8000, GST shall be
charged at 18% on Rs. 8000.
3. Where will the declared 3. Tariff declared anywhere, say
tariff be published? on the websites through which
business is being procured or
printed on tariff card or displayed
at the reception will be the de-
clared tariff. In case different tariff
is declared at different places,
highest of such declared tariffs
shall be the declared tariff for the
purpose of levy of GST.
4. Same room may have 4. In case different tariff is de-
different tariff at different clared for different seasons or pe-
times depending on season riods of the year, the tariff de-
or flow of tourists as per clared for the season in which the
dynamic pricing. Which service of accommodation is pro-
rate to be used then? vided shall apply.
5. If tariff changes be- 5. Declared tariff at the time of
tween booking and actual supply would apply.
usage, which rate will be
used?
6. GST at what rate would 6. If declared tariff of the
be levied if an upgrade is accommodation provided by way
provided to the customer at of upgrade is Rs. 10000, but
a lower rate? amount charged is Rs. 7000, then
GST would be levied @ 28% on
Rs. 7000/-.

The applicant humbly urges that in its opinion, the ambiguous noti-
fication and the clarification issued collectively enable the applicant
to opt for rate of 5% GST for its restaurant business. The query-wise
views of the appellant are stated below :-
Opinion in relation to query 1 :
The applicant has offered the room by declaring the tariff which
represents charges only towards hotel accommodation plus service
charge. At the time of booking of room, the proposed custom-
er/guest requests for an airport pick up and drop facility and also
requests to add breakfast. Furthermore, when the guest comes to
stay, the guest also eats meals at the restaurant of the applicant. In
order to better understand the applicant presents an illustration as
demonstrated below :
GST LAW TIMES  7th May 2020  187