GST issue related to Hotel Booking (Turnover less than 20 Lakh)

Hi,

If you are getting registration under GST, you have to cahrge GST to your customers and pay to govt even if your turnover is below 20 lacs. You have to file monthly returns as well.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

No, You can opt for Composition Scheme, because its available for few cateogry of services.

But as per section 24(ix), a peson who supply goods or services through electronic commerce operator required to compulsory registered and comply with law.

Q.1 Now these companies are saying (We need GST Number)

Ans-1 These cos saying for GSTIN because , otherwise they are liable to deposit GST under reverse charge.

Q-2So if we apply for GST- where we should apply? and how we would manage the tax returns? which scheme we should opt for?

Ans-2: Normal scheme because Restaurants covered under Composition scheme, Your services not covered.

Q-3Are we liable to pay GST even if we have a turnover of less than 20 Lakhs ? Do we need to charge our customers GST?

ANS-: yes because refer ANS-1.....yes u may charge (see below)

Q4- where we don't need to pay taxes as we fall under the bracket of 20L?

ANS: once you registered under GST, you are liable to pay GST. whatever your turnover

As per GST rate mentioned by GST Council for Hospitality as follows:-

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Description of services Credit eligibility Rate

Tour operator services Without credit 5 percent

Hotel accommodation

- Hotel where declared tariff is less than Rs 1000 per day or equivalent - Exempt

- Hotel having room tariff more than Rs 1000 and less than Rs 2500 With credit 12 percent

- Hotel having room tariff more than Rs 2500 and less than Rs 5000 With credit 18 percent

- 5 star and above rated hotel where room rent is more than Rs ?7500? and above per night per person With credit 28 percent

Restaurant services

- Restaurant with no AC and liquor license at anytime during the year With credit 12 percent

- AC or having heating facility or having liquor license or both With credit 18 percent

- Restaurant services in 5 star or above rated hotel With credit 18 percent

Air travel booking agent services

- Domestic bookings With credit 18 percent on commission or 5 percent of basic fare

- International bookings With credit 18 percent on commission or 10 percent of basic fare

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Hi,

Any person who is registered with any electronic commerce operator has to be registered for GST irrespective of the Turnover. {Section 24(ix) of CGST Act}. Also, these people are not eligible to opt for Composition Scheme. {Section 10(2)(d) of CGST Act}

Further, you are in the business of providing only Accommodation. So, you are ineligible to opt for composition even if you are not listed with any e-commerce operator. {Section 10(2)(a) of CGST Act).

However, As per Notification No. 17/2017 - Central Tax (Rate) dated 28-Jun-2017, there is no need for you to register if your Turnover is below Rs. 20 Lakhs as the e-commerce operator is made liable to pay the tax under Reverse Charge u/s 9(5) of the CGST Act

Hello,

It is not mandatory for you to opt for a GST number. But since the platforms are asking for one you will have to get your GST number and also charge GST on all your hotel bookings. Be it through the portal or over the counter.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

No, you can't opt for composition. As it is available only to traders, manufacturer and restaurants

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi,

If you have turnover below Rs. 20 Lakhs, then there is no need to Register unless you are registered with any e-commerce operator (Like MakeMyTrip, Yatra, Go ibibo etc).

However, as per Notification No. 17/2017 - Central Tax (Rate), you need not register for GST even if you are registered with e-commerce operator.

So, when you are not liable to register, then where is the question of charging GST? You need not worry about GST till you reach Rs. 20 Lakhs Turnover (Rs. 10 Lakhs in certain states)

Hello,

You will have to charge GST if you have registered under GST, no matter your turnover is less than Rs. 20 lakh.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hi,

Irrespective of your turnover, from the time you have taken a GST number, you will have to charge GST.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LLB

Hi,

Yes, once you have taken GST registration, 20 lacs limit has no relation. You have to charge GST.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

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