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input claim

KUMAR SWAMY MASNA (accountant) (103 Points)

15 May 2018

the tax rate for hotels is 5 percent is it after claiming input tax or not? the monthly turnover up to 2 lakhs

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 15 May 2018

As Per Noti. 46/2017

Restaurants without ITC, charge 5%
Restaurants in hotel where room tariff is 7500/- or more , charge 18% with full ITC

RATE OF GST – Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes:-

1. Declared Room Tariff upto Rs. 999/- : GST @ NIL [Remark – No ITC Credit]

2. Declared Room Tariff from Rs. 1000/- upto Rs. 2499/- : GST @ 12% [ITC Credit allowed]

3. Declared Room Tariff from Rs. 2500/- upto Rs. 7499/- : GST @ 18% [ITC Credit allowed]

4. Declared Room Tariff from Rs. 7500/- and above : GST @ 28% [ITC Credit allowed]

[NOTE : GST Rate is decided on the basis of Declared Room Tariff but the tax is chargeable only on the actual amount charged from the customer/ guest]