GST UPDATE ON RECENT CLARIFICATIONS GIVEN ON TWITTER HANDLE OF GOVERNMENT

After GST rollout, there were some practical difficulties faced by people from various industries on which clarifications were essentially required. Recently, following clarifications have been given via twitter handle of government:-
There were certain ambiguities in relation to taxable value and rate of GST applicable for accommodation services. In this respect, it has been clarified that for the determination of tax slab rate declared / published tariff is to be used and GST will be payable on actual amount charged (transaction value )from the customer. In case the cost goes up (more than declared tariff) owing to additional bed, the rate of GST would continue to be determined according to declared tariff and taxable value would be the amount actually charged from the customer on account of extra bed. When different tariff is declared for different seasons of the year, the tariff declared for the season in which the service was actually provided shall apply. In case tariff changes between booking and actual usage, the declared tariff at the time of actual supply would apply. Further, if an upgrade is provided to the customers at a lower rate, then GST would be levied on the actual amount charged but at the rate applicable for the declared tariff of the upgraded room.
The hitches relating to some other topics were also clarified as follows:-
Betting done in casinos in pre-GST regime was subjected to betting tax on full bet value but now GST @28% is imposable on the transaction value of betting. In the same way, GST on horse racing would be leviable on the entire bet value.
• With regard to admission to cinema and accommodation in hotels and inns, price or declared tariff does not include the tax component.
• Room rent in hospitals is exempt.
• The GST rate of composition levy @ 5% will be leviable in case bakery items are supplied where eating place is attached.
• Where legal services other than representational services are provided by an advocate including a senior advocate to a business entity GST is required to be paid under reverse charge i.e. by the business entity.
• The supply of books shall be treated as supply of goods as long as supplier owns the books and has legal rights to sell those books on his own account.
Lastly, it has been cleared that the home stays providing accommodation through an electronic commerce operator and having turnover below the threshold limit are not required to obtain registration. According to notification no.17/2017-central tax (Rate) the E-commerce operators are liable to pay GST.
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GST UPDATE ON RECENT CLARIFICATIONS GIVEN ON TWITTER HANDLE OF GOVERNMENT

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