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Banquet booking with GST

Jayanta Bandyopadhyay (315 Points)

29 April 2023

As we are exploring booking of banquet, there are 2 option:

1. Booking of banquet on rent and meal separately plus GST

2. No charges for banquet but high rate for plate. Definitely, banquet rent is hidden under plate rate.

What is tax planning? Please advise.

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6 Replies

CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
Replied 29 April 2023

If you are booking banquet for business purpose then only you can avail ITC og GST. Better book banquet with all facilities as part of its rent.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 April 2023

You can have separate bill for Banguet Rent & can claim ITC on the same but it is subject to provision of Section 12(3) the pos is where the Banguet is located. So if you have place of Business in same state where the Banguet is located you can claim ITC as Supplier will charge CGST/SGST only .

Note : ITC is available subject to Conditions prescribed in Section 16(2).

sabyasachi mukherjee (27589 Points)
Replied 29 April 2023

YOU CANNOT CLAIM INPUT TAX CREDIT HERE BECAUSE FOR THE SOLE REASON you are not organizing these banquet for business purpose.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 April 2023

Yes you can if it is in course & furtherance of business.

Jayanta Bandyopadhyay (315 Points)
Replied 30 April 2023

My simple query as to why Hotel is not charging for banquet separately but the same is being loaded wuth guest meal plate price . Is there any GST / INCOME TAX planning in place ?