Page 202 - GSTL_7th May 2020_Vol 36_Part 1

160 GST LAW TIMES [ Vol. 36
@18% on amount charged for restaurant services i.e. for
breakfast to the guest under category of ‘restaurant services’.
Further, the applicant is liable to pay GST @ 18% with ITC
on airport pickup and drop charges collected from guest
under ‘Passenger transport services’.
Question-4 : If the answer to query No. 3 results in liability to pay GST
as in tariff being lesser than Rs. 7,500/- whether the appli-
cant will be liable to pay 5% GST on restaurant services to
the guest who stays at hotel as well as to any outsider who
comes just to eat at the restaurant in terms of Notification
No. 46/2017-CGST (Rate) and not 18% GST?
Answer : In case declared room tariff of less than Rs. 7500/- per unit
per day, M/s. Mangaldas Mehta and Co. Limited (GSTIN-
24AAACM4217CIZ5) is liable to pay GST @ 5% without
ITC on restaurant services provided to the guest who stays
at hotel as well as to any outsider who comes just to eat at
the restaurant.
Question-5 : During the financial year, on account of low season, the
tariff remains below Rs. 7,500/-. However in peak season,
the room tariff exceed Rs. 7,500/-, then in this situation,
whether the liability of the applicant to pay GST at 18% on
restaurant arises from inception or from the day the tariff
exceeds Rs. 7,500 and it falls back to 5% as soon as the tariff
falls below Rs. 7,500?
Answer : In case different room tariff is declared for different sea-
sons or periods of the year, the tariff declared for the season in
which the service is provided shall apply. GST Rate would be
determined according to declared tariff for the room, and
GST at the rate so determined would be levied on the
amount charged for restaurant services from the
guest/customer.
Question-6 : The applicant has certain lower category of rooms wherein
the tariff at which they are sold at includes breakfast. In
this scenario, what will be the liability to pay GST on room
tariff and breakfast in the event the applicant is liable to
pay only 5% GST on restaurant services as tariff falls below
Rs. 7,500 and low category rooms are sold at Rs. 3,400/-?.
Answer : In case different tariff is declared for rooms, highest of such
declared tariffs shall be the declared tariff for the purpose
of levy of GST. If declared tariff of any unit of accommodation
of Rs. 7500/- and above per unit per day or equivalent, M/s.
Mangaldas Mehta and Co. Limited (GSTIN-
24AAACM4217CIZ5) is liable to pay GST @ 28% on
amount charged for room including breakfast (i.e. Rs.
3400/-) from guest.
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GST LAW TIMES  7th May 2020  202