Q.1 a) Will GST is charges on actual tariff for accommodation services?
b) What will be GST rates if post goes up (more than declared tariff) owing to additional bed?
c) Where will the declared tariff be published?
d) Some room may have different tariff at different times depending on season or flow of tourists as per dynamic price. Which rate to be used then?
e) If tariff changes between booking and actual usage, which rate will be used?
f) GST at what rate would be levied if an upgrade is provided to the customer at lower rate
Ans: a) Declared or published tariff is relevant only for determination of the tax rate slab.GST will be payable on the actual amount charged. (Transaction value)
b) GST rate would be determined according to declared tariff for the room. And GST at the rate so determined would be levied on the entire amount charged from the customer. For the example , if the declared tariff is Rs. 7000/- per unit per day but the amount charged from the customer on account of extra bed is Rs. 8000/- GST shall be charged at 18% on Rs. 8000
c) Tariff declared anywhere, say on the websites through which business is being procured or printed on tariff card or displayed at the reception will be declared tariff. In case different tariff declared in different places. Highest of such declared tariffs shall be declared tariff for the purpose of levy of GST.
d) In case different tariff is declared for different seasons or periods of the year. The tariff declared for the season in which the service of accommodation is provided shall apply.
e) Declared Tariff at the time of supply of this service would apply.
f) if declared tariff of the accommodation provided by way of upgrade is Rs. 10000/- , but amount charged is Rs. 7000/-, then GST would be levied @28% on Rs. 7000/-
Q.2 Vide Notification No.11/2017-central Tax (rate) dated the 28th June 2017 entry 34. GST on the service of admission into casino under Heading 1996(recreational, cultural and sporting services)has been levied @28% . Since the value of supply rule has not specified the method of determining taxable amount in casino.Casino operators have been informed to collect 28% GSTon gross amount collected as admission charge or entry fee. The method of levy adopted needs to be clarified.
Ans. Relevant part of 34 of the said CGST notification read as under:
“Heading 9996 (recreational, cultural and sporting services)
- Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go-rounds, go carting, casinos ,race course , bailet any sporting event such as Indian Premier League and the like. -14%
(v) Gambling – 14%
As is evident from the notification, ‘entry to casinos’ and gambling are two different services, and GST is leviable at 28% on both these services (14% CGST and 14% SGST ) on the value determined as per section 15of the CGST Act, Thus, GST @28% would apply on entry to casinos as well as on betting/gambling service being provided by casinos on the transaction value of betting.i.e. the total bet value , in addition to GST levy on any other services being provided by the casinos (such as services by way of supply of food ‘ drinks etc. at the casinos). Betting, in pre GST regime, was subjected to Betting tax on full bet Value
Q.3 The provision in rate schedule notification No. 11/2017- Central Tax (Rate) dated the 28th June 2017 does not clearly state the tax base to levy GST on horse racing. This may be clarified.
Ans: GST would be leviable on the entire bet value i.e. total of face value of any or all bets paid into the totalisator or placed with licensed book makers, as the case may be. Illustration: if entire bet value is Rs. 100/- GST leviable will be Rs. 28/-
Q.4 a) whether for the purpose of entries at Si. Nos. 34(ii) [admission to cinema] and 7 (ii)(viXvii) [Accommodation in hotels, inns etc.)Of notification 11/2017-CT (Rate) dated 28th June 2017, price/declared tariff includes the tax component or not?
b) Whether rent on rooms provided to in-patients is exempted? If liable to tax, please mention the entry of CGST notification 11/2017-CT (Rate)
c) What will be the rate of tax for bakery items supplied whereas eating place is attached-manufacturer for the purpose of composition levy?
Ans.a) Price/declared tariff does not include taxes.
b) Room Rent in Hospitals is exempt.
c) Any service by way of serving of food or drinks including by a bakery qualifies under section 10(1) (b) of CGST Act and hence GST rate of compositions levy for the same would be 5%
Q.5 whether home stays providing accommodation through an Electronic Commerce Operator, below threshold limit are exempt from taking registration?
Ans. Notification No.17/2017-Central Tax (Rate), has been issued making ECOs liable for payment of GST in case accommodation services provided in hotel,Inns,guest houses and other commercial places meant for residential or lodging purposes provided by a person having turnover below Rs. 20 lakh (Rs. 10 lakh in special category states) per annum and thus not required to take registration under section 22 (1) of CGST Act.2017.
Q.6 To Clarify Whether supply in the situations listed below shall be treated as a supply of goods or supply of services?
a)The books are printed /published/sold on procuring copyright from the author or his legal heir (e.g. white tiger procures copyright from Ruskin Bond)
b) The books are printed /published/sold against a specific brand name. [e.g Manorama Year Book]
c) The books are printed/published /sold on paying copyright fees to a foreign publisher for publishing Indian edition (same language) of foreign books [e.g. penguin (India) Ltd .pays fees to Rutledge (London)]
d) The books are printed/published/sold on paying copyright fees to a foreign publisher for publishing Indian language edition (translated) [e.g. Ananda Publishers Ltd pays to fees to penguin (NY)]
Ans: The supply of books shall be treated as supply of goods as long as the supplier owns the books and has the legal rights to sell those books on his own account.
Q.7 Whether legal services other than representational services provided by an individual advocate or a senior advocate to a business entity , GST is required to be paid by the recipient of the service under reverse charged mechanism , i.e. the business entity.
Ans : Yes In case of legal services including representational services provided by an advocate including a senior advocate to a business entity. GST is required to be paid by the recipient of the service under reverse charge mechanism. i.e. business entity.