GST ON RESTAURANT SERVICES & HOTELS IN INDIA I EXPLAINED I 5% vs 18% I RECOMMENDATION GST COUNCIL

Описание: 🍽️ Your Next Dinner Bill: A GST Rollercoaster! 🎢
*(GST on Restaurants & Hotels in India Explained – With Humor, Animation & Legal Insight)*

🎬 VIDEO TIMESTAMPS:
00:00 - Intro: The Dinner Bill Drama Begins
01:15 - What is GST on Restaurants Anyway?
02:30 - Welcome to "Specified Premises" – The VIP Hotel Club
04:00 - The 5% vs 18% GST Choice – A Legal Buffet
06:15 - What is Input Tax Credit (ITC)?
08:00 - “Declared Tariff” – A Legal Maze
10:00 - Hotel Room Charges & GST Trickery
11:30 - Online Discounts & Their Legal Twists
13:00 - GST Council’s Recommendation – A Positive Change?
14:30 - Conclusion & Viewer Takeaway
15:30 - Call to Action + Outro

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🔍 Understanding GST on Restaurants in India

Whether you're a student ordering a midnight pizza, a foodie exploring every new café, or just someone grabbing dinner with family at a hotel—your bill always includes *GST (Goods and Services Tax)**. But what exactly is being taxed? And more importantly, **why does the tax vary so drastically between two places serving the same food?*

In this episode, we break it down in plain English—with *animations, analogies, and plenty of laughs**—to explain why **you might be charged 5% GST at a small eatery* and *a whopping 18% at a fancy hotel restaurant**. Spoiler alert: it has less to do with the food and *everything to do with the **declared tariff of hotel rooms**!

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🏨 The "Specified Premises" Twist: Hotels & GST

Did you know that restaurants operating inside certain hotels are considered "specified premises" and *must charge 18% GST* on your food bill? Sounds bizarre, right? But it’s true—and the threshold is *INR ₹7,500 per night**. If *any room in a hotel was priced above that in the *previous financial year*, it qualifies the restaurant as a high-tax zone!

What Does This Mean for You?
Ordering biryani in a ₹7,501-per-night hotel? Expect 18% GST.
Same biryani at a standalone restaurant? Only 5% GST!
Sounds unfair? That's what we’re exploring in detail.

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💸 5% GST vs 18% GST: The Restaurant's Choice

Here's where it gets interesting. Restaurants that don’t fall under the "specified premises" umbrella have a **choice**:
Charge 5% GST (but *no Input Tax Credit* allowed), or
Opt for 18% GST (with *full ITC* on purchases)

We break this down with the help of **a fun analogy**: Think of it like choosing between a budget airline ticket (cheap, no perks) and a business class seat (expensive but packed with benefits).

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💼 What's the Deal with Input Tax Credit (ITC)?

ITC can be a confusing topic, but we explain it with a fun animated segment. Basically, if a restaurant pays GST on its raw materials—chicken, rice, masalas, veggies—they can *claim that back* if they opt for 18% GST. This makes tax collection and pricing fairer for businesses—but might not always reflect in your final bill.

So depending on how efficiently a restaurant uses ITC, **your meal may or may not get more expensive**. We explore real-world scenarios where:
Restaurants absorb the higher tax with ITC savings
OR pass the full brunt of 18% GST onto customers

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📜 Declared Tariff – The Legal Landmine

Now comes the big plot twist in our legal rollercoaster: **the "declared tariff"**. This is the price of the hotel room that determines whether or not a hotel falls into the high-GST bracket.

But what counts as “Declared Tariff”?
Website-listed price?
The physical rate card at the reception?
The cost during peak season (even for one day)?
Price before or after discounts?

All of these have been argued in legal forums and in circulars from GST authorities.

🔔 In our animated explainer, we show how:
A hotel with one ₹7,501 room (even if it's rarely booked) could be taxed at 18%
Adding charges for breakfast or airport transfer could *push your ₹7,200 room into the 18% zone*
You could be charged based on a "declared tariff" that you never actually paid!

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🎯 GST Council’s Big Recommendation

Luckily, there’s hope! The GST Council has acknowledged the *confusion and outdated nature* of the declared tariff rule and has recommended **linking GST to the actual value of supply**—i.e., what the customer actually pays.

✅ This would make taxation more fair
✅ Eliminate confusion for restaurant owners and customers
✅ Prevent misuse or overreach by tax authorities

🎤 Viewer Takeaways

Always check where you're dining—especially if it's inside a fancy hotel
GST on your food can swing between *5% and 18%* based on non-food factors
The "declared tariff" is **not the price you pay**, but it may still affect your food bill
Restaurants have legal options—**choose 5% with no ITC or 18% with ITC**
The legal community is pushing for *more clarity* and *fairer rules* moving forward