Page 192 - GSTL_7th May 2020_Vol 36_Part 1

150 GST LAW TIMES [ Vol. 36
(7) As is evident, the services of break-fast, airport pickup-drop, extra
bed, laundry, lunch/dinner are all optional services and are inde-
pendent in nature and have no bearing with room stay.
(8) Recently, the Government has issued a Notification No. 46/2017,
dated 14th November, 2017 whereby the rate of restaurant services
was revised from 18% to 5% subject to certain conditions.
(9) Furthermore, on 4th January, 2018, a Circular vide F. No.
354/107/2017-TRU was issued whereby certain clarifications were
issued about inclusion of tariff and applicable rate of GST.
(10) The restaurant of the applicant and hotel are in the same premises.
Needless to say there are clearly demarcated areas and sections
whereby the restaurant area is different and room stay area is dif-
ferent in the premises.
5. The Central Goods and Services Tax, Ahmedabad South Commis-
sionerate, vide their letter dated 18-5-2018, submitted the point-wise reply re-
garding the queries raised by the Applicant, as under :-
(1) It is to submit that the as per reply received from the Proprietor of
the company and it is noticed that presently their manufacturing ac-
tivity is going on i.e. (activities are running).
(2) Question/issued raised in the application are whether pending or
decided in any proceedings in the case of applicant is not known by
this office.
(3) The applicant containing items reflecting charges towards room
stay, services charge, breakfast, airport pickup & drop, extra bed
form part of Tariff for providing facilities to accommodate the hotel
facilities and these all activity are related with each other for hotel
business and therefore these services are bundled service by the
way of supply. Therefore the GST rate may be applicable @ 28% on
the bundled services.
Discussion & Finding :
6. We have gone through the facts of the case, documents on record
and submission made by the Applicant as well as Jurisdictional Authority.
7. We find that the Applicant runs a boutique hotel as well as restau-
rant. The restaurant of the applicant is situated in the hotel’s premises. The appli-
cant charges tariff for room stay from the customers based on the seasons. The
invoice raised depicting money charged from the customer of the applicant com-
prise of the following :-
 Room stay
 Service charge
 Breakfast
 Airport pickup and drop
 Extra Bed
 Laundry services
 Lunch/Dinner
 Heritage Walk.
8. We further find that their declared tariff represents only the charges
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