Month: September 2017

Services by a person by way of-

(b) renting of precincts of a religious place meant for general public, owned or managed by

Ø an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or

Ø a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or

Ø a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act

is NIL rated

Provided that nothing contained in entry (b) of this exemption shall apply to,-

(i)                renting of rooms where charges are one thousand rupees or more per day;

(ii)              renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ten thousand rupees  or more per day;

(iii)            renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month

“declared tariff” includes

Ø charges for all amenities provided in the unit of accommodation (given on rent for stay)

Ø like furniture, air conditioner, refrigerators or any other amenities,

Ø but without excluding any discount offered on the published charges for such unit.

Ø Services by a hotel, inn, guest house, club or campsite, by whatever name called,

Ø for residential or lodging purposes,

Ø having declared tariff of a unit of accommodation

Ø below one thousand rupees per day or equivalent.

Is exempt as per Sl. No. 14 of Notificaiton 12/2017-CTR

Service tax was also exempt.

Ø Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places

Ø meant for residential or lodging purposes

Ø having declared tariff of a unit of accommodation of one thousand rupees and above but less than two  thousand five hundred rupees per unit per day or equivalent.

GST Rate is 12%

In service tax rate was 60% of 15%= 9% as per NN 26/2012

Ø Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places

Ø meant for residential or lodging purposes

Ø having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent.

GST Rate is 18%

In service tax rate was 60% of 15%= 9% as per NN 26/2012

Ø Accommodation in hotels including five star hotels, inns, guest houses, clubs, campsites or other commercial places

Ø meant for residential or lodging purposes

Ø having declared tariff of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent.

GST Rate is 28%

The following composite supplies shall be treated as a supply of services, namely:—

(b) 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.

Ø Notwithstanding anything to the contrary contained in this Act but subject to

Ø the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate

Ø turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in

Ø lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but

Ø not exceeding,––

Ø (b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and subject to such conditions and restrictions as may be prescribed:

(2) The registered person shall be eligible to opt under sub-section (1), if:—

Ø (a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II;

Ø (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act;

Ø (c) he is not engaged in making any inter-State outward supplies of goods;

Ø (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and

Ø (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council:

Ø Supply,

Ø by way of or as part of any service or in any other manner whatsoever,

Ø of goods, being food or any other article for human consumption or drink,

Ø where such supply or service is for cash, deferred payment or other valuable consideration,

Ø provided by a restaurant, eating joint including mess, canteen,

Ø neither having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year nor having licence or permit or by whatever name called to serve alcoholic liquor for human consumption.

§  GST Rate is 12%.

Under Service tax law, there was NIL tax. State Vat on supply of food and beverages  was however applicable

—  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,

—  where such supply or service is for cash, deferred payment or other valuable consideration,

—  provided by a restaurant, eating joint including mess, canteen,

—  having licence or permit or by whatever name called to serve alcoholic liquor for human consumption.

      @ 18%

Under Service tax law, there was NIL tax. State Vat on supply of food and beverages  was however applicable

—  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,

—  where such supply or service is for cash, deferred payment or other valuable consideration,

—  provided by a restaurant, eating joint including mess, canteen,

—  having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.

—  @ 18%

Service tax rate was 40% of 15% i.e. 6%. State Vat on supply of food and beverages  was however applicable

Ø Supply,

Ø  by way of or as part of any service or in any other manner whatsoever

Ø  in outdoor catering

Ø  wherein goods, being food or any other article for human consumption or any drink

Ø (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering

Ø and such supply or service is for cash, deferred payment or other valuable consideration.

@ 18%

Service tax rate was 60% of 15%= 9%. State Vat on supply of food and beverages  was however applicable

Ø Supply,

Ø by way of or as part of any service or in any other manner whatsoever,

Ø of goods,

Ø including but not limited to food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption),

Ø  where such supply or service is for cash, deferred payment or other valuable consideration,

Ø in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function)

Ø together with renting of such premises.

@ 18%

Service tax rate was 70% of 15%= 10.5%. State Vat on supply of food and beverages  was however applicable