GST on Hotel Room ,Guest House
The hospitality and restaurant industry in plagued by multiple taxes (Service tax, VAT and luxury tax) in the current indirect tax regime. Under GST, the single tax will be levied and advantage would be uniformity of tax rates and better utilization of input credit and benefits to end user in terms of lower prices. GST tax regime will help reduce multiple taxation, giving a significant boost to the hospitality and tourism industry. The GST is supposed to replace both service tax and luxury tax as hotels are presently suffering from multiplicity of taxation.
Applicability of Registration Under GST for Hotel
Section 22 to 25 specifies the persons who are liable to obtain GST Registration.
Every person who is engaged in supply of goods or rendering of services or both will be liable to be registered under the GST if
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 20 Lac or
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 10 Lac if person is located at North Eastern area ( Manipur , Arunachal Pradesh , Nagaland , Meghalaya , Assam , Tripura & Mizoram , Sikkim , Jammu & Kashmir , Himachal
Pradesh & Uttarakhand )
GST Rate on Hotel Room , Guest House For Loading
|Hotels, lodges, Guest House which charge between Rs 1,000 to Rs 2,500||12%|
|Hotels, lodges, Guest House which charges in the price range of Rs 2,500 to Rs 7,500||18%|
|Hotels, lodges, Guest House which charges tariffs above Rs. 7,500||28%|
When GST become Payable for Hotel Room Renting ?
Earliest of following date shall be considered as time of supply.
- When invoice is issued
- When invoice is not issued in 30 days from date of supply of service
- Date of receipt of services in books of account of service recipient
GST Return filing for Hotel Room Renting
- GST registration holder would have to file GSTR-1 (details of outward supplies) on the 10th of each month.
- GSTR-2 (details of inward supplies) on the 15th of each month and GSTR-3 (monthly return) on the 20th of each month.
- Compounding taxpayers would be required to file GSTR-4 every quarter, on 18th of the month next to the quarter.
- Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December.
GST Rates In Different Countries- Worldwide GST Rates