Page 197 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : MANGALDAS MEHTA AND CO. LIMITED 155
10. We also find that the Government of India, Ministry of Finance,
Department of Revenue (Tax Research Unit), vide Circular No. 27/01/2018-GST,
dated 4-1-2018 (Issued from F. No. 354/107/2017-TRU), has issued clarifications
on certain issues regarding levy of GST on supply of services. Relevant extract of
the same is reproduced hereinbelow :

Sr. Questions/Clarifications Clarifications
No. Sought
1 1. Will GST be charged on 1. Declared or published tariff is rele-
actual tariff or declared vant only for determination of the tax
tariff for accommodation rate slab. GST will be payable on the
services? actual amount charged (transaction
value).
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 deter-
additional bed. mined would be levied on the entire
amount charged from the customer.
For example, if the declared 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 on
tariff be published? the websites through which business is
being procured or printed on tariff card
or displayed at the reception will be
the declared 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 declared
different tariff at different for different seasons or periods of the
times depending on season year, the tariff declared for the season
or flow of tourists as per in which the service of accommodation
dynamic pricing. Which is provided shall apply.
rate to be used then?
5. If tariff changes be- 5. Declared tariff at the time of sup-
tween booking and actual ply would apply.
usage, which rate will be
used?
6. GST at what rate would 6. If declared tariff of the accommo-
be levied if an upgrade is dation provided by way of upgrade is
provided to the customer at Rs. 10000, but amount charged is Rs.
a lower rate? 7000, then GST would be levied @ 28%
on Rs. 7000/-.

Supply of Room or unit accommodation services by hotel:
11. From the above, it clearly reveals that GST Rate for the “Supply of
Room or unit accommodation services by hotels’ would be determined according
to declared tariff for the room, and GST at the rate so determined would be lev-
GST LAW TIMES  7th May 2020  197