2025-VIL-144-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR - Section 2(30) of the CGST Act, 2017 - Hotel accommodation, Composite supply, specified premises - The applicant is engaged in the hotel business and offers various meal plans like European Plan (EP), Continental Plan (CP), and American Plan (AP) along with accommodation services – Classification and applicable GST rate on food component in the AP or CP plans when the total value of the combined supply exceeds Rs. 7,500 and the tax invoice distinctly enumerates the two supplies separately - HELD - The hotel premises of the applicant will qualify for ‘specified premises’ for financial year 2025-26 if the value of supply of any room exceeds Rupees Seven thousand five hundred in financial year 2024-25. If the said value of supply of any room does not exceed Rupees Seven thousand five hundred in financial year 2024-25, the premises of the applicant will not be considered as ‘specified premises. The food component in the AP or CP plans is part of a composite supply, and the principal supply is the accommodation service. Therefore, the entire bundled supply, even if the charges for accommodation and food are shown separately, will be taxed at the rate applicable to the principal supply of accommodation service. If the total value of the combined supply (accommodation and food) exceeds Rs. 7,500, the applicable GST rate will be 18% GST – In the present case, since the total value of supply in a combined form (room charge and food charge) as submitted by the applicant has not exceeded Rupees Seven thousand five hundred per day per room in AP or CP for financial year 2024-25 in case of any room, the applicant’s hotel will not be considered as ‘specified premise’ for financial year 2025-26 – Ordered accordingly - Applicable tax rate for separate restaurant services provided to walk-in guests considering the recent Notification No. 05/2025-Central Tax (Rate) dated 16.01.2025 - HELD - The separate restaurant services provided to walk-in guests will be taxable at 5% GST, as the hotel premises does not qualify as a "specified premises" for the financial year 2025-26 based on the information provided by the applicant. However, if in any ongoing financial year, the hotel charges a rate above Rs. 7,500 for any unit of accommodation (inclusive of the food charges in the applicable plan, even if indicated separately in the invoices), the premises shall qualify to be considered as "specified premises" for the next financial year, and the appropriate rate of 18% GST shall apply for the restaurant services provided to walk-in guests.
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