Is Gst Applicable For Homestay at Homestay

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Is Gst Applicable For Homestay. The threshold limit of aggregate annual turnover of rs.20 lakhs for registration purpose is applicable for hospitality industry as well. But the stipulation that hotel rooms with rents upwards of ₹1,000 should be charged the tax has put the homestay owners in a spot.

Hera Guesthouse (Homestay) December 2018
Hera Guesthouse (Homestay) December 2018 from hehe-homestay.blogspot.com

It means that if a homestay charges rs 4,000 inclusive of all services, 18% gst is charged on rs. The hosptality body estimates that the recent move to bring fsas under gst will prevent tax loss of around ₹2000 cr caused due to underreporting by the aggregators. Since july, a tax rate of 18% has been applicable on bookings, placing the small homestays — homes where a maximum of five rooms can be let out to guests — on the same.

Hera Guesthouse (Homestay) December 2018

The threshold limit of aggregate annual turnover of rs.20 lakhs for registration purpose is applicable for hospitality industry as well. However, now it has been extended to all the homestays. Since july, a tax rate of 18% has been applicable on bookings, placing the small homestays — homes where a maximum of five rooms can be let out to guests — on the same. You aren’t subject to gst as the rental charge is input taxed.