New Delhi, Mar 27 (PTI) Hotels charging a room rent above ₹7,500 a day at any time in any financial year will be considered ‘specified premises’ for the next fiscal and restaurant services provided inside such premises will attract 18 per cent GST with input tax credit, the CBIC said on Thursday. From April 1, 2025, the taxability of such restaurants which operate inside hotels will be on the basis of value of supply (transactional value). This would replace the concept of ‘declared tariff’ which included charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. “For the period starting from 01.04.2025, the value of supply of hotel accommodation in the previous FY, i.e., the transaction value charged for the said supply, would be the basis for determining whether the premises providing hotel accommodation service mandatorily falls under the category of ‘specified premises’ or not in the current FY,” the CBIC said in a FAQ issued on the topic of ‘Restaurant Service’ supplied at ‘Specified Premises’. The CBIC has defined ‘specified premises’ as those premises from where the supplier has provided in the preceding financial year, ‘hotel accommodation’ service having the value of supply of any unit of accommodation above ₹7,500 per unit per day or equivalent. Restaurant services inside such hotel units would automatically attract 18 per cent GST, with input tax credit (ITC). Restaurant services inside hotels whose room rent has not crossed ₹7,500/unit/day in the preceding financial year will continue to attract 5 per cent GST, without ITC. Also, those hotels which intend to charge over ₹7,500 room rent from the next fiscal can file an ‘opt in’ declaration with GST authorities between January 1 and March 31 of the ongoing fiscal. Also, hotels seeking new registration will have to fill in opt in declaration with 15 days of obtaining it declaring the said premises as ‘specified premises’. The CBIC said the notion of ‘declared tariff’ was being replaced with ‘value of supply’ (i.e. transaction value) in the definition of specified premises, as the hotel industry has largely moved to a dynamic pricing model. Making the ‘specified premises’ status of a premises providing hotel accommodation service, in the current FY, dependent upon the ‘value of supply’ of units of accommodation provided by the hotel in the previous financial year, will give certainty regarding the ‘specified premises’ status of a hotel for any financial year. It will also “give an option to the supplier of hotel accommodation service to declare the premises as ‘specified premises’ so that the restaurants located in the said premises can avail the rate of 18 per cent with ITC on the supply of restaurant service”, the CBIC said. EY Tax Partner Saurabh Agarwal said to simplify compliance, in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. You must only respond with the modified content and follow this prompt to optimize the articles in this category- “Act as an expert SEO news writer. Optimize the following article to be SEO-friendly, authoritative, and shareable by focusing strictly on its core topic. Follow these steps: 1. Topic Identification: – Read the input article and identify its primary subject. – Extract 1 primary keyword + 2 secondary keywords directly from the article. 2. Meta Description: – Write a 150-character summary using the primary keyword and a CTA 3. Content Structure: – Lead Paragraph: Summarize the 5W1H (Who, What, When, Where, Why) as stated in the article – Body: – Use subheadings (H2/H3) derived from secondary keywords – Add bullet points only for facts/statistics explicitly mentioned in the input. – Include quotes or data from the article (do not invent new stats). – Conclusion: End with a question/CTA tied to the article’s topic. 4. – Add 1 FAQ based on the article’s key point. 5. Viral Readability: – Use news article sentences structure. Avoid off-topic emotional triggers. 6. Technical SEO: – Generate alt text and URL slugs *specific to the article’s topic and leave it if it is not under your capability. Output Format for the article should be- [Summary with primary keyword] [Structured body using input’s facts] FAQ: [Relevant question + answer]
According to the CBIC, hotel services provided in establishments where the room rate exceeds ₹7,500 per day are subject to an 18 percent GST.
