Clarifications regarding levy of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema, homestays, printing, legal services etc.

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..... it is stated that the following clarifications, inter-alia, were published as FAQ at www.wbcomtax.gov.in S.No. Questions/ Clarifications sought Clarifications 1. 1. Will GST be charged on actual tariff or declared tariff for accommodation services? 2. What will be GST rate if cost goes up (more than declared tariff) owing to additional bed? 3. Where will the declared tariff be published? 4. Same room may have different tariff at different times depending on season or flow of tourists as per dynamic pricing. Which rate to be used then? 5. If tariff changes between booking and actual usage, which rate will be used? 6. GST at what rate would be levied if an upgrade is provided to the customer at a lower rate? 1. Declared or publish .....

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..... supply rule has not specified the method of determining taxable amount in casino, Casino Operators have been informed to collect 28% GST on gross amount collected as admission charge or entry fee. The method of levy adopted needs to be clarified. Relevant part of entry 34 of the said WBGST notification reads as under: "Heading 9996 (Recreational, cultural and sporting services) - … (iii) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go- carting, casinos, race-course, ballet, any sporting event such as Indian Premier League and the like. -14% (iv)… (v) Gambling. - 14 %" As is evident .....

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..... 1/2017-State Tax (Rate)]. 3. What will be the rate of tax for bakery items supplied where eating place is attached - manufacturer for the purpose of composition levy? 1. Price/ declared tariff does not include taxes. 2. Room rent in hospitals is exempt. 3. Any service by way of serving of food or drinks including by a bakery qualifies under section 10 (1) (b) of WBGST Act and hence GST rate of composition levy for the same would be 5%. 5. Whether homestays providing accommodation through an Electronic Commerce Operator, below threshold limit are exempt from taking registration? Notification No. 1141-F.T.[17/2017-State Tax (Rate)], has been issued making ECOs liable for payment of GST in case of accommodation services provided in hote .....

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..... a business entity are liable for GST under reverse charge mechanism? Yes. In case of legal services including representational services provided by an advocate including a senior advocate to a business entity, GST is required to be paid by the recipient of the service under reverse charge mechanism, i.e. the business entity. 3. The above clarifications are reiterated for the purpose of levy of GST on supply of services. 4. Difficulty if any, in the implementation of the circular should be brought to the notice of the Commissioner. 5. This circular shall be deemed to have come into force with effect from 04.01.2018. Sd/- (Smaraki Mahapatra) Commissioner, State Tax, West Bengal Date: 18.09.2018 Memo. - 384 CT/PRO 3C/PRO/2018
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