one of my friend has started hotel business with banquet halls and he took GST license also.
1. He is now paying 70000 rent for a month to owner. what about GST ? The owner is taking the rent amount through cheque so GST should be paid by owner or my friend ?
2. sale of food and cool drinks in his hotel. both in various tax rates five and 28 percent . He is eligible for claim ITC ? What is the tax rates for him with claiming ITC or without claiming ITC ?
3. in the same premises he had one banquet hall if a function held in there how much tax he has to be pay ?
5 Replies
CA ABHAY GUPTA
(Practice)
(3230 Points)
Replied 07 March 2021
1. he needs to make payment of GST only in case charged by owner of property if he is not charging then simply deduct TDS and make payment after tds.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 March 2021
1. GST amount need to paid by Owner but the same s being collected from your friend. (Moreover it's depends on rent agreement whether 70 k is including GST)
2.Need to charge 5% without ITC (Refer Notification 20/2019 CT (r))
3. It's 5% GST without ITC(Refer Notification 20/2/19 CT rate) Note : if ‘hotel accommodation’ services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent then the GST rate for S.no. 2 & 3 above shall be 18% with ITC
2.Need to charge 5% without ITC (Refer Notification 20/2019 CT (r))
3. It's 5% GST without ITC(Refer Notification 20/2/19 CT rate) Note : if ‘hotel accommodation’ services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent then the GST rate for S.no. 2 & 3 above shall be 18% with ITC
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 March 2021
Sorry for the reply for S.no.3 as for Banquet hall it's 18% GST with ITC
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