Dear Sir,
My question to you that what will be the GST rate applicable on guest house ? Currently, as we are including service tax 8.40 % in our invoice. Please suggest me briefly. Will any charges be applicable on that like swatch bharat cess & krishi kalyan cess. Please reply.
From July 1, you have to charge 12% GST on room rent. Full input credit on expenses incurred is available.
For rooms with rent below 1,000 charge, tax is exempted.
Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day, GST rate of tax is 12% with full ITC.
Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/ and above but less than Rs 7500/- per room per day then GST rate is 18% with full ITC.
There is no cess under GST on services as of now.
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