Page 188 - GSTL_7th May 2020_Vol 36_Part 1

146 GST LAW TIMES [ Vol. 36
Illustration 1 :
The break-up of the invoice comes as follows for one night stay i.e.
2 days and 1 night :-

Description ol service Amount Remarks
(Rs.)
(exclud-
ing GST)
Room stay plus service 7400 Declared tariff given to the
charge for double proposed customer at time of
occupancy
Breakfast 1000 Optional Service added extra
Airport pickup and 1000 Optional Service added extra
drop
Food bill 1800 Ate dinner at restaurant
Heritage Walk 800 Optional Service added extra
Total Invoice 12000

The applicant also runs a restaurant business apart from accommo-
dation and is unable to ascertain the rate of GST to be charged. It is
very pertinent to note that breakfast, airport pick up drop, heritage
walk, charges for lunch/dinner are optional services and one may
or may not choose to avail these additional services. Hence, these
services cannot be said to be naturally bundled and there is no
composite supply. Each service is unique, different, not inter de-
pendent on each other and is optional.
In the opinion of the applicant, based on the explanation provided
in the Notification as well as the clarification issued by the Hon’ble
Ministry of Finance, the definition of the declared tariff will never
ever include the charges of breakfast or airport pick up and drop as
well as food bill. In this scenario, the liability of the applicant to pay
GST on hotel accommodation i.e. Room stay plus service charge will
be 18% GST.
Opinion in relation to query 2 :
As demonstrated in illustration 1, the tariff of the applicant falls be-
low Rs. 7,500/- and hence, in the humble opinion of the applicant
the applicable rate of GST on breakfast, food bill as well as restau-
rant services would be 5% GST in view of the Notification No.
46/2017- CGST (Rate).
Opinion in relation to query 3 :
In relation to query no. 3, many times the proposed guests of the
applicant wants a variety of services and asks the applicant to pro-
vide a final price to the guest at the time of booking. The applicant
gives a consolidated single figure to the proposed guest and also ac-
cepts money accordingly. However, when the applicant prepares an
invoice upon check out from the hotel, the invoice would reveal
separate prices for each service requested by the guest at the time of
booking. An illustration would better clarify the situation.
GST LAW TIMES  7th May 2020  188