GST CHANGES FOR HOTEL AND RESTAURANT INDUSTRY

If a premises becomes a specified premises, then the restaurants operating from those premises, have to charge GST at 18% on the restaurant services rendered by it, and can no longer charge 5% GST. Against such 18% GST, the restaurant is allowed to claim GST input tax credit.

- CA Gaurav Kenkre

CA Gaurav Kenkre is a CA in practice for the last 11 years. He is a regular speaker at various professional organizations, trade bodies, MNCs and Government bodies. He also writes regularly in local as well as national publications. Besides this he holds various positions in bodies such as ICAI, GCCI, College bodies, Rotary etc.

An important change has been recently made effective, which hasa directimpact on the Hotel Industry. It is imperative that all businesses having hotels keep abreast of the same.

Change in meaning of specified premises: The term specified premises has been now defined as below, with effect from 1.4.2025

A premises from where the supplier has provided in the preceding financial year, hotel accommodation service having the value of supply of any unit of accommodation above Rs. 7500 per unit per day or equivalent;