GST Rates For Hospitality Industry

• June 26, 2020
• CA Chandan Agarwal's Office

GST is levied on services provided by hotels under Heading 9963 as ‘Accommodation, food and beverage services’ of Notification No. 11/2017-CT(R) (‘Rate Notification’). The GST Council in its 37^th Meeting held on 20.09.2019 had recommended that the rate of GST applicable on the accommodation services provided by a hotel should be reduced. To give effect to this recommendation, Notification No. 20/2019-CT(R) dated 30.09.2019 (‘Amending Notification’) has been issued w.e.f. 01.10.2019. A brief analysis of the Amending Notification relevant to the hospitality industry is as follows:

Changes in GST applicable on Accommodation Services

The Amending Notification has introduced new entries from (i) to (vi) under S. No. 7 pertaining to Heading 9963. A summary of the rate on accommodation applicable before and after the amendment is as below:

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