Page 189 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : MANGALDAS MEHTA AND CO. LIMITED 147
Illustration 2 : Single amount quoted to guest but invoice reflects
specific items of services and money attributable to each such ser-
vice :

Sr. Particulars Amount Remarks
No. (Rs.)
[excl.GST]
A Amount quoted to 14,000 Single price quoted in-
proposed guest at the cludes charges for 1
time of making a res- night stay at hotel, break-
ervation for double fast, lunch, dinner, herit-
occupancy. age walk, extra bed, and
airport pick up and drop
B Invoice made at check
out and contains fol-
lowing break up
(a) Room stay plus 7,400
service charge
(b) Breakfast 1,000
(c) Lunch 1,800
(d) Dinner 1,800
(e) Airport pickup 1,000
and drop
(f) Heritage Walk 800
(g) Extra Bed for kid 200
up to 10 years of age
Total amount charged 14,000
excluding GST

The applicant states that each service is mutually exclusive and is
optional for the guest to choose. The applicant is of the view that the
tariff comprises only and only of Room stay plus service charge and
hence, the liability to pay GST will be only 18% on hotel accommo-
dation and not 28% GST. The applicant is further fortified in its
view by the clarification issued by Ministry of Finance on 4th Janu-
ary, 2018 as well as the fact the charges towards various other ser-
vices are nowhere in room services. The definition of declared tariff
speaks about inclusion of charges for amenities provided in unit of
accommodation such as refrigerator, furniture, air-condition etc.
This leads one to the conclusion that in order to stay in the room the
hotel provides refrigerator, bed, furniture and air-condition which
represent a basic infrastructure of the property. All other items such
as extra bed, items placed in refrigerator, breakfast, etc. are optional
services which the guest may or may not consume. The definition of
declared tariff forms a genus of services which never ever includes
anything other charges for infrastructure. More so, even the extra
bed as clarified nowhere gets included in declared tariff. In view of
GST LAW TIMES  7th May 2020  189