Page 51 - CA Final GST

Badlani Classes

Net amount charged 900
During the month of Oct 2018, 20 rooms are let out throughout the month, and balance
35 rooms are let out only for 15 days. Input Tax Credit available Rs 7,500.
The following GST rates are applicable for the hotel industry: 12%, 18% and 28%.
Find the GST liability if any for the month of Oct 2018.
FOODS & BEVERAGE SERVICES
(1) Supply of foods or drinks as part of service is supply of service : Supply, by way
of or as part of any service or in any other manner whatsoever, of goods, being food
or any other article for human consumption or any drink (other than alcoholic liquor
for human consumption ), where such supply or service is for cash, deferred payment
or other valuable consideration is supply of service.

(2) Composition Scheme –A registered person, whose aggregate turnover in the
preceding financial year did not exceed Rs1 (proposed to increase Rs 1.5 cr) crore,
will be eligible to opt for payment of tax under the composition scheme.

However, the aggregate turnover in the preceding financial year shall be `75lakh in
the case of aneligible registered person in North Eastern States and Himachal Pradesh.

Rates of composition tax [Section 10(1)]:The rates of tax under composition scheme
is 5%.

GST Rates :
All stand alone restaurants (With AC or NON AC) @ 5%
(No ITC)
Restaurants in hotel premises having room tariff of less than Rs 7500/- @ 5%
per unit per day (No ITC)
Restaurants in hotel premises having room tariff of Rs 7500/- or more @ 18%
per unit per day (with ITC)

“Turnover in State” or “turnover in Union territory” means the aggregate value
of all taxable supplies (excluding the value of inward supplies on which tax is payable
by a person on reverse charge basis) and exempt supplies made within a State or
Union territory by a taxable person, exports of goods or services or both and inter-
State supplies of goods or services or both made from the State or Union territory by
the said taxable person but excludes central tax. State tax, Union territory tax,
integrated tax and cess [Section 2(112)].

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Central Goods & Services Tax Act, 2017