Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

TAX RATE ON PACKED WATER BOTTLE

Yogesh (Finance Controller) (104 Points)

10 June 2018

one guest use water bottle in mini bar, hotel person charge 18% GST on water bottle price.
Guest annoyed why we pay GST on water.
please clarify

Reply
Follow
Share

5 Replies

Vinod Babu (24191 Points)
Replied 10 June 2018

Yes gst for mineral water sold is @ 18% in regular case.
Suppose the MRP of 1 litre of mineral water is Rs 20.
The 18% gst is included in the amount.
Value is 16.96, Cgst 1.52 sgst 1.52 all sum of these us Rs 20.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

prakin singhal (314 Points)
Replied 10 June 2018

GST is leviable on mineral water and it is included in MRP. The owner cannot ask to pay 18% GST on MRP.

Vinod Babu (24191 Points)
Replied 10 June 2018

The hotel cannot charge again 18% on MRP of mineral water.

1 Like

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 10 June 2018

Not only mineral water but in any product/goods the GST cannot be charged on MRP.

Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.

Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.

Note : Moreover GST is inclusive of MRP

1 Like