I have few question on renting of hotel rooms. I am running a hotel in Delhi and have few practical questions.
- GST rate of tax is based on the actual amount charged to customer or on quoted price. For example, I charge customer 5000 per room per day but room rent price is quoted as Rs. 8000 per day per night. I should charge 18% GST or 28%?
- The declared or quoted price for hotel room per day is Rs. 5000 per because of extra bed additional 3000 was charged so total bill is Rs. 8000. I should charge 28% or 18%?
GST tax rate on actual hotel room rent or declared room rent
Tax rate on hotel rooms is based on the declared rent. For example, if you have rent price list and rent as per price list is 8000 then you have to charge tax 28% regardless of amount you charge to guest.
In your case if declared rent per day is Rs. 8000 but you charge only Rs. 5000 then you have to charge 28% on 5,000.
Rent for hotel room is 5000 but collected more because of extra service or extra bed
As already said tax rate will be based on pricing list. So even if you collect more than price list you have to fix GST tax rate based on displayed pricing list. You need to charge GST at 18% on room rent collected since your quoted price was 5000.
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