Orsino Hotels & Resorts LLP ., In re

FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING WEST BENGAL

1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression ^„GST Act‟ would mean the CGST Act and the WBGST Act both.

1.2 The applicant is engaged in the hotel business through its property named Orsino Spa Resort (formerly known as Hotel Pine Tree Spa Resort) located in Darjeeling. The resort comprises 45 rooms and offers various amenities such as a spa, banquet facilities, a bar, a multi-cuisine restaurant, and a cafe. The hotel offers various meal plan options along with the accommodation service as per the industry practices like AP, CP, EP. In the American Plan (AP) all the 3 meals i.e. breakfast +lunch +dinner is included. In the Continental Plan (CP), breakfast is included and in the European Plan (EP), it is the most basic plan providing only accommodation service. Therefore, such supplies provided under AP, CP plan constitutes a composite supply under GST. In addition, the hotel also provided separate restaurant services to the walk- in- guests.

1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following questions vide serial number 14 of the application in FORM GST ARA-01:

(i) What is the appropriate classification and applicable GST rate for the food component provided under the American Plan (AP) or Continental Plan (CP) when the total value of the combined supply (AP, CP) exceeds Rs. 7,500 and the tax invoice distinctly enumerates the two supplies separately?

(ii) The separate restaurant services provided to walk in guests shall be taxable at which rate in above case, considering the recent Notification No. 05/2025-Central Tax (Rate) dated January 16, 2025,

1.4 The questions on which the advance ruling is sought for is found to be covered under clause (a) & (b) of sub-section (2) of section 97 of the GST Act.

1.5 The applicant states that the questions rose in the application neither have been decided by nor is pending before any authority under any provision of the GST Act.

1.6 The application is, therefore, admitted.

Submission of the Applicant

2.1 The applicant is engaged in a hotel business under the name “Orsino Hotels & Resorts LLP,” having a property named ORSINO SPA RESORT, having erstwhile name as HOTEL PINE TREE SPA RESORT, in Darjeeling, which has a capacity of 45 rooms along with additional amenities like a spa, banquet facilities, a bar, a multi-cuisine restaurant and a café. The applicant provides various services, including accommodation, food and beverage services, spa services, and event hosting.

2.2 The average room tariff in our property per unit per day is less than Rs. 7500. Therefore, the hotel does not fall under the definition of “Specified Premises” as per GST law.

2.3 As a standard practice in this industry, the applicant also offers flexibility to the guests to choose from different meal inclusive plans along with accommodation.

2.4 The different plans are EP, CP, AP etc. i.e. European Plan, Continental Plan, American Plan namely, as per the parlance used in the hospitality industry.

• The EP plan, is the most basic plan offering only the room accommodation service
• Continental plan is inclusive of breakfast along with the room and
• AP plan, it includes all three meals along with the room accommodation

2.5 The applicant charges GST on the composite supply of services provided i.e. bundled supply of accommodation along with meal options. Although offered as bundled packages, there is a clear demarcation of charges between accommodation and food services in the pricing structure/tax invoice.

2.6 An example is being taken to illustrate the scenario which is put up in the questions above:

Guests make a booking on double-sharing basis under EP plan and the tariff is Rs. 5000 per night for accommodation only. However, if they include all 3 meals (breakfast + lunch+ dinner) and book an AP plan, the total amount charged is Rs. 8000 per night.

Now, in such cases although the booking is invoiced as per industry parlance under EP, AP respectively the pricing reflects a distinct segregation of Rs. 5,000 towards accommodation and Rs. 3,000 attributable to food services. This pricing approach is based on realistic and transparent cost allocation, despite the nomenclature used on the invoice. Therefore, the invoice raised transparently shows the segregation of prices of both components.

This bundled supply of room and food is treated as composite supply under GST, where the principal supply being supply of accommodation services. Accordingly, GST is charged at the applicable rate on such composite supplies.

Further, the hotel also provides separate restaurant services to the walk-in-guests who come to enjoy the food and charges GST rate as 5% since, the hotel does not fall under the definition of “specified premises” as mentioned above.

In addition to providing bundled services to in-house guests, the applicant also operates a restaurant that serves walk-in customers. For such separate restaurant services, GST is charged at 5%, since the hotel does not qualify as a “Specified Premises” under GST.

2.7 The applicant is a hotel owner and provides hotel accommodation services to the clients through its various properties.

2.8 The definition of “Hotel Accommodation” has been provided in Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended.

^„Hotel accommodation‟ means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation.

Accommodation services have been quoted in Chapter 99, section 6 and heading 9963 as per Notification No. 11/2017 Central Tax (Rate) as amended.

GST Rate applicable w.e.f 18.07.2022 on Accommodation services provided are as follows:

As per the GST Act and notifications definitions of the following are:

• Specified Premises for a financial year means “ a premises from where the supplier has provided in the preceding financial year, „ hotel accommodation‟ service having the value of supply of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent;
• Composite supply has been defined u/s 2(30) as “ composite supply” means a supply made by taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is principal supply;
•  Section 2(90) defines “principal supply” as the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.

2.9 Section 8 of the CGST Act, 2017 prescribes the tax liability on a composite supply.

The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:-

(a) A composite supply comprising two or more supplies, one of which is a principal supply shall be treated as a supply of such principal supply;

2.10 As per illustration stated above the value of supply in different plans are as follows:

2.11 Here, the different plans offered to the guests are a natural bundle of services in the ordinary course of business and therefore, constitutes a COMPOSITE SUPPLY of services under GST wherein the principal supply being the accommodation services. In composite supply, as the definition also clarifies, that a bouquet of services is being provided with different value of supply attributable to each service. However, the entire supply attracting the tax rate of the principal supply.

Therefore, the applicant also provides accommodation services along with the meal plans as a composite supply and the price of the 2 individual services is realistically segregated.

2.12 The hotel also does not fall under the definition of “specified premises” since, value of supply of none of the unit in any day exceeds the limit of Rs. 7500 per day per unit. Further, it is notable that in the definition, it is clearly stated that the Rs. 7500 limit is for the accommodation service only. Therefore, this limit is applicable only to the tariff charged for room and does not cover the entire bundle supply.

Hence, the price of EP plan (Rs. 5000) should be considered i.e. value of supply of accommodation service exclusively while checking the Rs. 7500 threshold limit.

2.13 Hence, as per our understanding, the GST rate applicable on such composite supply of services shall be 12% considering the above and for the individual restaurant services provided to the walk-in customers, it shall be taxable @5% since, the restaurant is not located in “specified premises” as already highlighted in the above paras.

3.Submission of the Revenue

3.1 The concerned officer from the revenue has not expressed any view on the merit of the issue raised by the applicant.

4. Observations & Findings of the Authority

4.1 We have gone through the records of the issue as well as submissions made by the authorized representative of the applicant during personal hearing.

4.2 As per the statement furnished, the applicant is running a hotel business under the name “Orsino Hotels & Resorts LLP,” having a property named ORSINO SPA RESORT, having erstwhile name as HOTEL PINE TREE SPA RESORT, in Darjeeling. It has a capacity of 45 rooms along with additional amenities like a spa, banquet facilities, a bar, a multi-cuisine restaurant and a café. The applicant provides various services including accommodation, food and beverage services, spa services, and event hosting.

The applicant has stated that the average room tariff in the property per unit per day is less than Rs. 7,500.00. As a standard practice in the industry the applicant offers flexibility to the guests to choose from different meal-inclusive plans along with accommodation. The different plans that the applicant offers are: European Plan (EP), Continental Plan (CP) and American Plan (AP) where the terms carry their usual meanings in the hospitality industry.

As per the applicant’s statement, he charges GST on the composite supply of services provided i.e. bundled supply of accommodation along with meal options. Although offered as bundled packages, there is a clear demarcation of charges between accommodation and food services in the pricing structure and tax invoice.

The applicant has placed an example of the whole thing. Suppose guests make a booking of a room on double sharing basis under EP plan and the tariff is Rs. Rs. 5,000.00 per night for accommodation only. However, if they include all three meals (breakfast, lunch and dinner), the total amount charged is Rs. 8,000.00 per night. In such case the pricing reflects a distinct segregation of Rs. 5,000.00 towards accommodation and Rs. 3,000.00 attributable to food services. According to the statement of the applicant, this bundled supply of room and food is treated as a composite supply where the principal supply is regarded as supply of accommodation service. Accordingly, GST is charged at the applicable rate on such composite supply.

In addition to the above, the applicant has a restaurant that serves the walk-in customers with food. The applicant charges GST @5% on such supply of food to walk-in customers on the belief that his hotel premises does not fall under the definition of ^„specified premises‟.

On the basis of above facts the applicant has raised two questions as under:

1. What is the appropriate classification and applicable GST rate for the food component provided under the American Plan (AP) or Continental Plan (CP), when the total value of the combined supply exceeds Rs. 7,500.00 and the tax invoice distinctly enumerates the two supplies separately?

2. What shall be the tax rate for separate restaurant services provided to walk-in guests in the above case considering the recent Notification No. 05/2025-Central Tax (Rate) dated January 16, 2025,

4.3 Before going into the details of the discussion we must clarify certain issues and concepts related to the matters of this application for Advance Ruling.

Hotel: This term has not been defined in the GST Act. Usually, a hotel is an establishment that provides paid lodging accommodation on a short-term basis. It is a place that has rooms in which people can stay especially when they are traveling and it may provide food, and other varied services for paying guests. The only reference to hotel in the GST Act is to be found in the provisions of ^„Place of supply of services where location of supplier and recipients is in India‟ under Section 12 of the IGST Act, 2017. There hotel is associated with the service of lodging accommodation.

Accommodation Service: Again this concept is not defined in the GST Act itself. However, as per Section 12 of the IGST Act, 2017 accommodation service has been associated among other places with hotel also.

A definition, however, is forthcoming in paragraph 4 relating to Explanation in the Notification No. 11/2017 Central Tax (Rate) Dated 28.06.2017, as amended from time to time. In the said Notification, clause (xxxiv) was inserted vide Notification No. 20/2019-CT(Rate) dated 30.09.2019, wherein it is mentioned that:

“Hotel accommodation” means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation.

Here accommodation service refers to providing residential or lodging services for a short period where the tariff for a unit of accommodation is usually declared per unit per day. Accommodation service may include certain other facilities depending on the policy of the hotel. For example, in the case of the applicant, they have submitted that for the rooms under EP (European Plan) accommodation service refers to facility for staying in the room only. Again for the rooms under AP (American Plan) accommodation service refers to facility for staying in the room and all meals. For the rooms under CP (Continental Plan) accommodation service means facility for staying in the room and breakfast.

Room Tariff: It refers to the price charged by the hotel to the occupant for a particular room on per day basis. Usually it indicates the price for staying in the room only. However, depending on the policy of the hotel this may include charges for certain other services as well. For example, in AP the room tariff includes the charge for staying at the room and the charge for breakfast and two meals.

Value of Supply (for hotel): Value of Supply has been defined under Section 15 of the GST Act. The act defines value of supply as the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. Applying this definition to a hotel, the value of supply is the room tariff actually charged by the hotelier. This value shall not include the discounts as per the provisions of Section 15(3) of the GST Act.

4.4 Recent changes in the GST Act in respect of accommodation service given by the hotels: Notification No. 05/2025-Central Tax (Rate) dated January 16, 2025, has brought certain significant changes with effect from 01.04.2025 by amending Notification No. 11/2017 Central Tax (Rate) Dated 28.06.2017 in respect of hotel accommodation service.

The definition of ^„Specified Premises‟ has undergone change. Here we are reproducing the amendment.

In the said notification [Notification No. 11/2017 Central Tax (Rate) Dated 28.06.2017], –

(i) in paragraph 4 relating to Explanation, with effect from the 1^st day of April, 2025,-

(a) clause (xxxv) shall be omitted;

(b) for clause (xxxvi), the following clause shall be substituted, namely:- “ (xxxvi) “Specified premises”, for a financial year, means,-

(a) a premises from where the supplier has provided in the preceding financial year, ^„hotel accommodation‟ service having the value of supply of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent; or

(b) a premises for which a registered person supplying ^„hotel accommodation‟ service has filed a declaration, on or after the 1st of January and not later than 31st of March of the preceding financial year, declaring the said premises to be a specified premises; or

(c) a premises for which a person applying for registration has filed a declaration, within fifteen days of obtaining acknowledgement for the registration application, declaring the said premises to be a specified premises;”;

This amendment has brought the following changes in respect of accommodation services provided by hotels.

1. The concept of declared Tariff has been done away with from 01.04.2025 onwards.

2. As the concept of declared tariff has been abolished, the value of supply in respect of a hotel will follow the concept of value of supply as provided under Section 15 of the GST Act from 01.04.2025 onwards. It will be the actual value of supply charged by the hotelier.

3. The definition of specified premises has been changed. For the period prior to 01.04.2025, “specified premises” meant premises providing ^„hotel accommodation‟ services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.

From 01.04.2025, the definition of “specified premises” for a financial year includes any one of the followings:

A. Price-based criteria: Any premises where hotel accommodation services were provided in the previous financial year, with price exceeding seven thousand five hundred rupees per unit per day for any unit of accommodation.

B. Voluntary declaration by the existing suppliers: Any premises for which a registered hotel service provider declares his premises as “specified premises” between 1st January and 31st March of the preceding financial year.

C. Declaration by new applicants: Any premises which has been declared as “specified premises” by a person applying for registration within 15 days of receiving the acknowledgement for his application of registration.

In short, a premises automatically qualifies as “specified premises” for the current financial year if it meets the price criteria for the preceding financial year. Additionally, both existing and new hotel service providers have the option to voluntarily declare their premises as “specified premises” for a financial year. For the existing suppliers, the declaration has to be furnished by the specified date during the current financial year for being considered as “specified premises” in the next financial year.

4.5 It is at the above backdrop that we have to discuss the issues under this application for Advance Ruling. In hotel industry some hotels charge room rents for accommodation only. In the industry this is known as European Plan (EP). There are hotels who offer other plans like the American Plan (AP) or the Continental Plan (CP) with facility of choice to be exercised by the guests. The same hotel may have different kinds of plans. It is the customer’s choice as to opt for which plan according to his/her convenience.

The American Plan (AP) refers to a pricing model in the hotel industry where the room rate of a hotel inter alia includes all three meals: breakfast, lunch, and dinner. It is essentially an all-inclusive package that covers accommodation and meals for the duration of stay of the guests. Rates for hotels on the AP are typically higher than those without meals included, but they offer the convenience of knowing that food expenses are covered. Again usually this plan offers a reduced rate in comparison to the guest opting for having the meals separately to be supplied by the hotelier. This plan is often found in resorts, remote locations, or establishments that cater to guests seeking a hassle-free, all-inclusive experience.

The Continental Plan (CP) in a hotel means that the room rate includes a continental breakfast. This typically includes items like pastries, bread, fruit, coffee, and juice. The breakfast is usually served in the hotel’s restaurant or at a designated breakfast area, either buffet-styled or plated. It is similar to a ^„bed and breakfast’ arrangement, but the breakfast is usually a lighter, continental-style meal.

Generally, the guests do not receive any reduction in the room rate if they skip any/ all of the meals in an AP (American Plan) or breakfast in a CP (Continental Plan) package. AP or CP typically includes the room rate plus three meals (breakfast, lunch, and dinner) or breakfast respectively as a bundled package. The price is usually set to cover the cost of both the room and the meals. So not utilizing the meals does not usually result in a reduced rate. Hotels often structure their pricing with the AP or CP as a package deal. The cost of the meals is factored into the overall price, even if guests do not consume them. Hotels have fixed costs associated with providing meals, such as staff, ingredients, and overhead for kitchen and serving. These costs are spread across all guests, regardless of whether they choose to eat all or some of the meals or not. In most of the cases, hotels do not show separately in the bill the charges for the room and the meals when a room is booked on an AP or a CP. AP or CP is offered as package. Therefore no reduction is given to the guests if they skip any /all of the meals supposed to be provided by the hotelier. In course of personal hearing the Authorised representative stated that the room rate in the applicant’s premises is plan specific. It means if the guests are to get reduction for non-consumption of any/ all of the meals in AP or CP they have to opt for change of plan (say from AP to EP or from CP to EP). So there is no doubt that in case of AP or CP the charge is a consolidated one.

4.6 In Notification No. 11/ 2017- Central Tax (Rate) Dated 28.06.2017 and the corresponding State Tax notification we find definition of ^„hotel accommodation’ in Clause (xxxiv) of Explanation 4. The definition is reproduced here:

^„Hotel accommodation^„ means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation.

The word accommodation has not been defined anywhere in the GST Act. The Merriam-Webster Dictionary has defined accommodations (usually used in plural) as something supplied for convenience or to satisfy a need such as lodging, food, and services or traveling space and related services. The Britannica Dictionary has defined accommodations as a place (such as a room in a hotel) where travelers can sleep and find other services.

It is evident from the above definitions that accommodation service is not only something to do with lodging only. It represents other things as well that are necessary for lodging for a short period of time. Food is one such thing among many others.

4.7 In the statement of facts the applicant himself has submitted that in case of CP or AP the supply is a bundled one and as such this is treated as composite supply where the principal supply is supply of accommodation service.

“Composite supply” is defined in Section 2(30) of the CGST Act, 2017 and the corresponding provision of the WBGST Act, 2017 as “a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply”.

It is commonplace in the hotel industry to charge a consolidated amount for the accommodation services supplied by a hotel in case of guests opting for CP or AP as per their preferences. Even the rates of rooms in CP or AP are quoted, as per the norms of the industry, in a consolidated manner. There is no such separate quotation for room rate and charges for food. The applicant may bifurcate the charges for room and food but this does not mean that the accommodation service as referred to in the application for advance ruling is really a bifurcated one. Rather the two (room accommodation and food) form a composite supply, with the principal supply being accommodation service (SAC code 99631) falling under serial no. 7 of Notification No. 11/ 2017-Central Tax (Rate) Dated 28.06.2017 and the corresponding State Tax notification. So the value of supply in such cases is to be calculated on the basis of the total amount charged (but shown separately by the applicant) for the supply.

The hotels quote the consolidated rate for AP or CP where no breakup is shown. If the guests skip a meal/ meals no proportionate deduction is made from this consolidated rate quoted. This clearly proves beyond doubt that in such cases the accommodation rate includes both lodging and food expenses. The bifurcation of charges between room and food, if any shown by the applicant in the present case is nothing but a wishful action to segregate the two which are not actually and conceptually segregated. The entire amount, even if separately charged for food, will be considered as hotel accommodation service (SAC code being 99631).

4.8 Now the question comes as to what will be the applicable rate of GST in case of the above noted supplies. Supply of hotel accommodation service is to be taxed either under serial no. 7(i) or under serial no. 7(vi) of the Notification No. 11/ 2017- Central Tax (Rate) Dated 28.06.2017 depending on the value of supply of a unit of accommodation. If the value is less than or equal to Rupees Seven thousand five hundred, the supply is to be taxed under serial no. 7(i) i.e. 6% CGST+ 6% SGST. On the other hand, if the value of supply is more than Rupees Seven thousand five hundred, the supply is to be taxed under serial no. 7(vi) i.e. 9% CGST+ 9% SGST. There will not be any separate rate of tax for food and accommodation.

4.9 The applicant has a restaurant in his hotel premises that serves the walk-in customers with food. The applicant charges GST @5% on such supply of foods to walk-in customers on the belief that his hotel premises does not fall under the definition of ^„specified premises’. This service will fall under the description of services provided by restaurants, cafes and similar eating facilities including takeaway services, room services and door delivery of food under SAC 996331. As such, the supply will qualify either for serial no. 7(ii) of Notification No. 11/ 2017- Central Tax (Rate) Dated 28.06.2017 the description being ^„restaurant service’ other than at ^„specified premises’ or for serial no. 7(vi) of the notification description being accommodation, food and beverage services other than (i) to (v) i.e. ^„restaurant service’ at ^„specified premises’.

4.10 In paragraph 4.4 we have already discussed the concept of ^„specified premises’ as per the changes brought about by Notification No. 05/2025-Central Tax (Rate) dated January 16, 2025In the light of this notification we have to decide whether the applicant’s premises will qualify for ^„specified premises’.

In view of the above discussion we are of the considered view that the hotel premises of the applicant will qualify for ^„specified premises’ for financial year 2025-26 if the value of supply as defined in Paragraph 4.3 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. It is needless to mention that the value of supply obviously refers to the total price charged by the applicant in an AP or CP as detailed in the foregoing discussion.

During personal hearing we are informed that the applicant has not filed declaration Annexure VII. The applicant was asked to furnish the details of room rentals for financial year 2024-25 and the applicant complied with. From the list as furnished before us it is observed that the highest room rate for 2024-25 was Rs. 7,480.14 vide bill no. OHR/2425/2240 Dated 20.12.2024.

In our considered view, since the total value of supply as referred to in Paragraph 4.3 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.

Considering the above fact as placed before us we are of the considered view that the restaurant service provided by the applicant to the walk-in guests will be taxable under serial no. 7 (ii) of Notification No. 11/ 2017- Central Tax (Rate) Dated 28.06.2017 as amended read with the corresponding State Tax notification. However, if in any Financial Year, the hotel charges a rate of 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 appropriate rate of GST at 9% CGST + 9% SGST shall apply for the restaurant services provided to walk-in guests.

In view of the foregoing discussion, we rule as under:

RULING  

1. What is the appropriate classification and applicable GST rate for the food component provided under the American Plan (AP) or Continental Plan (CP), when the total value of the combined supply exceeds Rs. 7,500.00 and the tax invoice distinctly enumerates the two supplies separately?

Answer: Under the American Plan (AP) or Continental Plan (CP), the food component will have no separate treatment for the purpose of taxation, since it is clearly a case of “composite supply”. If the total value of the combined supply (accommodation and food) exceeds Rupees Seven thousand five hundred it will be taxable under serial no. 7(vi) ibid and the tax rate will be 9% CGST + 9% SGST.

2. What shall be the tax rate for separate restaurant services provided to walk-in guests in the above case considering the recent Notification No. 05/2025-Central Tax (Rate) dated January 16, 2025? Answer: In the above case the separate restaurant services provided in the hotel premises to walk-in guests will be taxable under serial no. 7 (ii) of Notification No. 11/ 2017- Central Tax (Rate) Dated 28.06.2017 as amended read with the corresponding State Tax notification as amended considering the recent Notification No. 05/2025-Central Tax (Rate) dated January 16, 2025 since the hotel premises is not a ^„specified premises’ for financial year 2025-26 as per data furnished by the applicant. In that case the tax rate will be 2.5% CGST + 2.5% SGST subject to the condition prescribed in column 5 of the table in the said notification for financial year 2025-26.

However, it is clarified that if in any ongoing Financial Year, the hotel charges a rate of 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 appropriate rate of GST at 9% CGST + 9% SGST shall apply for the restaurant services provided to walk-in guests.