Friday 5 January 2018

Finmin explains GST levy on accommodation, betting & gambling, horse racing, printing services

Finance Ministry (TRU) explains levy of GST on supply of services such as accommodation, homestays, betting and gambling in casinos, horse racing, admission to cinema, printing and legal; Reiterates that in case of accommodation services, declared / published tariff is relevant only for determination of tax rate slab and that GST will be payable on the actual amount charged (transaction value); As per Notification No. 11/2017-Central Tax (Rate), GST at 28% would apply on entry to casinos as well as on betting / gambling services provided by the casinos on transaction value of betting i.e. total bet value, in addition to GST on any other services such supply of food / drinks; In case of horse racing, GST would be leviable on entire bet value i.e. total of face value of any or all bets paid to totalizator or placed with licensed book makers, as the case may be; While room rent from in-patients in hospital is exempt, E-commerce Operators are liable to GST in case of accommodation services provided by person having turnover below threshold and such persons, even though they provide services through E-commerce Operators, are not required to take registration; As regards printing / publication / selling of books, Ministry clarifies that 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 : Finance Ministry Circular 

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