Accommodation services will be charged on actual transaction value instead of declared Tariff vide Notification No. 13/2018 dated July 26, 2018

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The Central Government vide Notification No. 13/2018 – Central Tax (Rate) dated July 26, 2018, has issued the gist of the aforesaid notification as explained hereunder:

 

Sr. No Chapter or Section heading Description of Service (Existing) Description of Service (Revised) Rate (%)
7. Heading 9963  (Accommodation, food and beverage services) (ii) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent. (Rs. 1000 – Less Than Rs. 2500)

Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

(ii) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having value of supply of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent. (Rs. 1000 – Less Than Rs. 2500)

Note: The words “declared tariff” is substituted by “Value of supply” i.e Actual Tariff or Transaction Value.

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   (vi) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent. (Rs. 2500 – Less Than Rs. 7500)

Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

 (vi) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having value of supply of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent. (Rs. 2500 – Less Than Rs. 7500)

Note: The words “declared tariff” is substituted by “Value of supply” i.e Actual Tariff or Transaction Value.

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  (viii) Accommodation in hotels including five  star hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent. (Rs. 7500 and above) 

Explanation.-“declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

(viii) Accommodation in hotels including five  star hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having value of Supply of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent. (Rs. 7500 and above) 

Note: The words “declared tariff” is substituted by “Value of supply” i.e Actual Tariff or Transaction Value..

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Please note the following changes:

  1. The word declared tariff is substitued with Value of Supply, Therefore now the tax on accomodation charges will be charged on actual transaction value as per slab prescribed earlier in serial no 7 of N.No. 11/2017 – Central Tax (R) dated June 28, 2017, which was further ammended by N.No 46/2017 – Central Tax Rate dated November 14, 2017.
  2. This aforesaid notification shall be effective from July 27, 2018.
  3. The explanation provided in earlier notification is now omitted vide N.No. 13/2018

Read More at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-13-2018-cgst-rate-english.pdf;jsessionid=261A3BDACFFE0C76D5DE943D94E7DEE8

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