The CBIC vide Notification No. 20/2019- Central Tax (Rate) dated September 30, 2019, in order to give effect to the recommendations made by GST Council in their 37th meeting, further amended the Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017, in the following manner, discussed as hereunder:-
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Sr. No |
Chapter Heading or Subheading | Description of Services | Rate of Services |
Conditions |
| 7. | Heading 9963 (Accommodation, food and beverage services) |
Against Sr. No. 7, for the following entries shall be substituted: (i) Supply of “hotel accommodation” having a value of supply of a unit of accommodation above one thousand rupees (> Rs. 1,000/-) but less than or equal to seven thousand five hundred rupees (< Rs. 7,500/-) per unit per day or equivalent. |
6 |
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(ii) Supply of “restaurant service” other than at “specified premises”. |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] |
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(iii) Supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways, Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms. |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying 2 the service has not been taken [Please refer to Explanation no. (iv)] |
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(iv) Supply of “outdoor catering”, at premises other than “specified premises” provided by any person other than- (a) suppliers providing “hotel accommodation” at “specified premises”, or |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation (iv)] |
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(v) Composite supply of “outdoor catering” together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) at premises other than “specified premises” provided by any person other than:- (a) suppliers providing “hotel accommodation” at “specified premises”, or (b) suppliers located in “specified premises”. |
2.5 |
Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation (iv)] |
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(vi) Accommodation, food and beverage services other than (i) to (v) above Explanation:
(a) For the removal of doubt, it is hereby clarified that, supplies covered by items (ii), (iii), (iv) and (v) in column (3) shall attract central tax prescribed against them in column (4) subject to conditions specified against them in column (5), which is a mandatory rate and shall not be levied at the rate as specified under this entry.
(b) This entry covers the supply of “restaurant service” at “specified premises” (c) This entry covers the supply of “hotel accommodation” having the value of supply of a unit of accommodation above seven thousand five hundred rupees (> Rs. 7,500/-) per unit per day or equivalent. (d) This entry covers the supply of “outdoor catering”, provided by suppliers providing “hotel accommodation” at “specified premises”, or suppliers located in “specified premises”. (e) This entry covers composite supply of “outdoor catering” together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) provided by suppliers providing “hotel accommodation” at “specified premises”, or suppliers located in “specified premises”. |
9 |
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Note:
In paragraph 4 relating to explanation, after clause (xxxi), the following clauses shall be inserted, namely: –
“(xxxii) “Restaurant service” means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied.
(xxxiii) “Outdoor catering” means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event-based and occasional in nature.
(xxxiv) “Hotel accommodation” means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of timeshare usage rights by way of accommodation.
(xxxv) “Declared tariff” means 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.
(xxxvi)„ Specified premises” means premises providing „hotel accommodation ‟services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.”.
Read More at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-20-2019-cgst-rate-english.pdf
Note:
- This notification shall come into force on October 01, 2019.
- Similar Notifications has been issued under the IGST Act and UTGST Act vide Notification No. 19/2019- Integrated Tax (Rate) and Notification No. 20/2019- Union Territory Tax (Rate) both dated September 30, 2019.