What is the mechanism for publishing rate in a hotel according to GST law?

While filing the summary return in Form GSTR-3B, I observed there was a list of questions. Am I required to answer all before filing?

Upon logging-in and selecting the Form GSTR-3B tile in return dashboard for November 2017 onwards, the GST (goods and services tax) portal will display a list of questions the taxpayers need to answer. Based on the replies, the portal will display only the relevant tiles for their form.

Do we need to apply GST on credit notes issued for providing/receiving year-end discounts on a target basis? What would be the treatment if there is no written agreement for such discounts but this is being provided as a matter of trade practice? What would be the time period for such reconciliations?

Under the GST regime, a supplier is required to issue a credit note towards such a discount by giving reference to the original invoice. GSTR-1 does not allow furnishing of details for multiple invoices against a single credit note. A separate credit note must be issued against each invoice through which the supplies were made. GST reversal on such credit notes is permitted in case such a discount is established in terms of an agreement entered into at or before the time of supply.

It is advisable to have written agreements for such discounts in future to avoid litigation. Credit notes should be issued latest by September 30 of the next financial year or date of filing the annual return, whichever is earlier.

If alcohol is served in a restaurant, is a separate invoice required or may it be shown in the same tax invoice which will be issued according to GST law for other items?

You can issue a single invoice. According to GST law, where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single ‘invoice-cum-bill of supply’ may be issued for all such supplies.

Amit Bhagat
What is the mechanism for publishing the rate in a hotel according to GST law? A hotel, for example, publishes a rate plan of Rs 6,000 per room. In the peak season, it charges customers Rs 8,000 and in the off-season Rs 4,000 for that room. What is the GST rate applicable in that case for rates downward and upward?

The rate will be determined according to the declared rate for the room. While the discount offered on this rate is not excluded from the declared one for determining the tax rate, if the amount charged is higher than the declared one, it will be deemed to be the declared rate.

I am a manufacturer of goods. The tax rate on my outward supplies is less than the one on my procurement of goods. Can I claim the refund of input tax credit that remains unutilised on account of such a structure under the GST regime? 

Refund of unutilised input tax credit can be claimed only in respect of unutilised input tax credit relating to zero-rated supplies made without payment of tax or where input tax credit has been accumulated on account of an inverted duty structure. GST law does not provide for a refund in any other scenario. Accordingly, you should be eligible to claim a refund of unutilised input tax credit under the regime.

The writer is tax partner, PwC India. Aditya Khanna, associate director, PwC contributed to this column. The views expressed are experts’ own. Send your queries to yourmoney@bsmail.in

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel