Sr.
No.
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Questions/ Clarifications sought
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Clarifications
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1
|
Will GST be charged on actual tariff or declared tariff for
accommodation services?
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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).
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2
|
What will be GST rate if cost goes up (more than declared tariff)
owing to additional bed?
|
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 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.
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3
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Where will the declared tariff be published?
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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 the declared tariff. In case different tariff is declared
at different places, highest of such declared tariffs shall be the declared
tariff for the purpose of levy of GST.
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4
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Same room may have different tariff at different times depending
on season or flow of tourists as per dynamic pricing. Which rate to be used
then?
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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.
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5
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If tariff changes between booking and actual usage, which rate will
be used?
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Declared tariff at the time of supply would apply.
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6
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GST at what rate would be levied if an
upgrade is provided to the customer at a lower rate?
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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/-.
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7
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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 9996
(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% GST on
gross amount collected as admission charge or entry fee. The method of levy
adopted needs to be clarified.
|
Relevant part of entry 34 of the said CGST notification reads as
under:
“Heading 9996 (Recreational, cultural and sporting services) - …
(iii)
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, ballet,
any sporting event such as Indian Premier League and the like. - 14%
(iv)…
(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 15 of the CGST Act. Thus, GST @ 28% would apply on entry to
casinos as well as on betting/ gambling services 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.
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8
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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.
|
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/-.
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9
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Whether for the purpose of entries at Sl. Nos. 34(ii) [admission
to cinema] and 7(ii)(vi)(viii) [Accommodation in hotels, inns, etc.], of
notification 11/2017-CT (Rate) dated 28th June 2017, price/ declared
tariff includes the tax component or not?
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Price/ declared tariff does not include taxes.
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10
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Whether rent on rooms provided to inpatients is exempted? If
liable to tax, please mention the entry of CGST Notification 11/2017-CT(Rate)
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Room rent in hospitals is exempt.
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11
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What will be the rate of tax for bakery items
supplied where eating place is attached - manufacturer for the purpose of
composition levy?
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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 composition levy for the same would be 5%.
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12
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Whether homestays providing accommodation
through an Electronic Commerce Operator, below threshold limit are exempt
from taking registration?
|
Notification No. 17/2017-Central Tax (Rate),
has been issued making ECOs liable for payment of GST in case of
accommodation services provided in hotels, inns guest houses or other
commercial places meant for residential or lodging purposes provided by a
person having turnover below Rs. 20 lakhs (Rs. 10 lakhs in special category
states) per annum and thus not required to take registration under section
22(1) of CGST Act. Such persons, even though they provide services through
ECO, are not required to take registration in view of section 24(ix) of CGST
Act, 2017.
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13
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Whether legal services other than
representational services provided by an individual advocate or a senior
advocate to a business entity are liable for GST under reverse charge
mechanism?
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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. the business entity.
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Information of GST Act and Rules, GST latest news, GST useful procedure and general matters.
Sunday, 8 October 2017
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