Hotels across India get GST notices for underpayment on restaurant services

Hotels face GST demands as authorities flag underpayment on restaurant services linked to room tariffs above ₹7,500

Scores of hotels across the country have received retrospective demand notices worth thousands of crores of rupees for underpayment of the goods and services tax (GST) for restaurant services as authorities cracked down on the alleged evasion, even as hotel associations cried foul saying that these notices emanated from lack of clarity in GST rules and that there was no GST evasion.

 

Under the law, if the declared tariff of a hotel room is more than ₹7,500 per day, GST at 18 per cent becomes applicable on restaurant services also. However, for hotels with room rents below ₹7500, the GST