Page 50 - CA Final GST

Badlani Classes

Ans. : Highest tariff to be taken Tariff declared anywhere, say on the websites through
which business is being procured or printed on tariff card or displayed at the reception
will be the declared tariff. In case different tariff is declared at different places, highest
of such declared tariffs shall be the declared tariff for the purpose of levy of GST.
Problem : Same room may have different tariff at different times depending on season
or flow of tourists as per dynamic pricing . Which rate to be used then?
Ans : Different tariff at different times as per Dynamic Pricing In case different tariff
is declared for different seasons or periods of the year, the tariff declared for the season
in which the service of accommodation is provided shall apply.
Problem : If tariff changes between booking and actual usage, which rate will be used?
Ans : Tariff as per TOS Applicable Declared tariff at the time of supply would apply.
Problem : Whether for the purpose of accommodation in hotels, inns, etc., price/
declared tariff includes the tax component or not?
Ans : Price/declared tariff does not include taxes.
Que. Accommodation services M/s . XYZ Ltd. owns hotel, other immovable properties and is
engaged in letting of the same.
(1) Hotel rooms are let out at declared tariff of `1,000 per room day but actual room
rent charged is `900 per room day. Number of days for which it is let out – 50 days;
(2) Guest house is let out at declared tariff of `900 per room day and actual room rent
charged is `700 per room day. Number of days for which it is let out – 60 days;
(3) Dharmashala rooms (non-commercial) is given on rent. Declared tariff being `1,200
per room day but actual room rent charged `600 per room day. Number of days for
which it is let out – 60 days;
Compute the amount of GST payable if all charges are exclusive of GST. Rate of CGST
IS 6% and SGST is 6%. The information pertains to quarter ending 30.09.2017.
Ans. Computation of the Value of taxable supply & GST payable (amount in `)
(1) Hotel rooms let out [Taxable since declared tariff is `1,000] 45,000
[Gross amount charged (`900x50)= `45,000
(2) Guest house let out [Since declared tariff is less than `1,000- Nil
Exempt vide. Entry 14 of Notification No. 12/2017-CT
(Rate)]
(3) Dharmashala rooms given on rent.[Taxable even if it is non 36,000
commercial since declared tariff is not less than `1,000]
[Gross amount charged (`600x60}= `36,000]
Total Value of taxable supply 81,000
CGST payable @ 6% 4,860
SGST payable @ 6% 4,860
Total GST payable 9,720

Que. Queen Hotel Ltd. provider of rooms. Rent charged per day per room is as follows:
`
Room Rent 550
Furniture rent 400
Air-conditioner rent 150
Refrigerator rent 50 Page49
Less: Discount (250)

Central Goods & Services Tax Act, 2017