Applicability of GST for Hotels, Resorts & Spa? Tips by Expert GST Consultants.

Navigate GST complexities and streamline compliance for your hotel, resort, or spa with the help of knowledgeable CA and GST consultants in Udaipur. Get tailor-made GST insights and improve operational efficiency.

Q1: Is GST applicable to hotel accommodation below ₹1,000 per day?

A1: No, GST is not applicable to hotel accommodation with a room rate below ₹1,000 per day.

Q2: Can I claim Input Tax Credit (ITC) on food and beverages purchased for hotel restaurants?

A2: Yes, you can claim ITC on food and beverages used in the supply of taxable services like hotel accommodation and restaurant services. However, if the food and beverage expenses are for personal use, they are ineligible for ITC.

Q3: Are there any GST exemptions for spa and wellness services?

A3: No, spa and wellness services are subject to 18% GST.

Q4: How is GST applicable to the catering services provided during events held at hotels?

A4: Catering services provided in hotels for events such as conferences, weddings, etc., are subject to 5% GST if they are not air-conditioned, and 18% GST if air-conditioned.

Q5: What is the Reverse Charge Mechanism (RCM) and when does it apply under the Goods and service Tax Act?

A5: RCM requires the recipient of services to pay GST directly to the government instead of the supplier. This applies when hotels purchase services from unregistered suppliers or under specific services like security services.

Q6: Can GST on capital goods like furniture be claimed under ITC?

A6: Yes, GST paid on capital goods like furniture used for business purposes can be claimed under ITC, subject to the

Q7: What should be done if a GST invoice is not received for a service or supply from the vendor within the due date?

A7: In such cases, the business should request the supplier to issue a tax invoice for the transaction. Without a valid invoice, ITC cannot be claimed.

Q8: What is the treatment of GST on liquor served at the hotel?

A8: Liquor is outside the purview of GST and is subject to state-specific taxes under the Excise Act.

Q9: What is the penalty for non-compliance with GST regulations?

A9: Penalties for non-compliance with GST regulations include fines ranging from ₹10,000 or 10% of the tax due, whichever is higher, along with interest on the outstanding GST amount.

Unlock GST insights tailored for hotels, resorts, and spas. Let GST Consultants in Udaipur or ca in Udaipur guide you through GST complexities, enhancing compliance and operational efficiency. Navigate GST regulations with ease for your hotel, resort, or spa. Contact us now!”