GST TAX CHARGING METHODS

As per the GST Norms, the applicable Tax % is on the declared Tariff and not on
the agreed tariff.

Please find the GST Tax Slabs ::

<1000- 0% GST
>1000- <2500- 12% GST
>2500- <7500- 18% GST
>7500- 28% GST

For example, we have a rate contract with Corporate A @ 1250/ room night + GST

The GST tax % will be defined on the declared tariff on the particular date.

Declared Tariff for Hotel (From 01st Dec-10 th Dec- Rs 2200 and from 11th Dec-31 st Dec-
Rs 2800)

Please refer now to the 2 different scenarios for Corporate A

Scenario 1

Guest 1 checks in into hotel on 05th Dec and Guest 2 checks in into Treebo Singh Sons on
11th Dec

So guest 1 will be charged a 12% tax slab on agreed rate of Rs 1250 and Guest 2 will be
charged a GST of 18% on agreed rate of Rs 1250.

Scenario 2
Guest checks into Singh Sons on 01st Dec and checks out on 20th Dec

In this case the GST applicable for first 10 days is 12% and for the last 10 days is 18%. Hence
taking the average we will charge the guest 15% GST on the agreed rate of Rs 1250.