Recently, Central Government vide Circular No. 27/01/2018-GST dated 4^th January 2018 has provided clarification on various issues regarding levy of GST on supply of certain services such as accommodation service, betting and gambling in casinos, horse racing, admission to cinema, homestays, printing, legal services etc.

Team DYN has compiled the questions/clarifications sought, and their respective clarifications related to Hotel Industry in the table below-

S. No.	Questions	Clarification
1.	Will GST be charged on actual tariff or declared tariff for accommodation services?	Declared or published tariff is relevant only for determination of the tax rate slab. GST will be payable on the actual amount charged (transaction value).
2.	What will be GST rate if cost goes up (more than declared tariff) owing to additional bed.	GST rate would be determined according to declared tariff for the room, and GST at the rate so determined would be levied on the entire amount charged from the customer. For example, if the declared tariff is Rs. 7000 per unit per day but the amount charged from the customer on account of extra bed is Rs. 8000, GST shall be charged at 18% on Rs. 8000.
3.	Where will the declared tariff be published?	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.
4.	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?	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.
5.	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?	Declared tariff at the time of supply would apply.
6.	GST at what rate would be levied if an upgrade is provided to the customer at a lower rate?	If declared tariff of the accommodation provided by way of upgrade is Rs 10000, but amount charged is Rs 7000, then GST would be levied @ 28% on Rs 7000/-.
7.	Vide notification No. 11/2017-Central Tax (Rate) dated the 28th June 2017 entry 34, GST on the service of admission into casino under Heading 9996 (Recreational, cultural and sporting services) has been levied @ 28%. Since the Value of supply rule has not specified the method of determining taxable amount in casino, Casino Operators have been informed to collect 28% GST on gross amount collected as admission charge or entry fee. The method of levy adopted needs to be clarified.	Relevant part of entry 34 of the said CGST notification reads as under: “Heading 9996 (Recreational, cultural and sporting services) – … (iii) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, gocarting, casinos, race-course, ballet, any sporting event such as Indian Premier League and the like. – 14% (iv)… (v) Gambling. – 14 %” As is evident from the notification, “entry to casinos” and “gambling” are two different services, and GST is leviable at 28% on both these services (14% CGST and 14% SGST) on the value determined as per section 15 of the CGST Act. Thus, GST @ 28% would apply on entry to casinos as well as on betting/ gambling services being provided by casinos on the transaction value of betting, i.e. the total bet value, in addition to GST levy on any other services being provided by the casinos (such as services by way of supply of food/ drinks etc. at the casinos). Betting, in pre-GST regime, was subjected to betting tax on full bet value.
8.	Whether for the purpose of entries at Sl. Nos. 34(ii) [ADMISSION TO CINEMA] and 7(ii)(vi)(viii) [Accommodation in hotels, inns, etc.], of notification 11/2017-CT (Rate) dated 28th June 2017, price/ declared tariff includes the tax component or not?	Price/ declared tariff does not include taxes.
9.	What will be the rate of tax for bakery items supplied where eating place is attached – manufacturer for the purpose of composition levy?	Any service by way of serving of food or drinks including by a bakery qualifies under section 10 (1) (b) of CGST Act and hence GST rate of composition levy for the same would be 5%.
10.	Whether homestays providing accommodation through an Electronic Commerce Operator, below threshold limit are exempt from taking registration?	Notification No. 17/2017-Central Tax (Rate), has been issued making ECOs liable for payment of GST in case of accommodation services provided in hotels, inns guest houses or other commercial places meant for residential or lodging purposes provided by a person having turnover below Rs. 20 lakhs (Rs. 10 lakhs in special category states) per annum and thus not required to take registration under section 22(1) of CGST Act. Such persons, even though they provide services through ECO, are not required to take registration in view of section 24(ix) of CGST Act, 2017.