GST applicable on hotel, travel bookings cancellation charges

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The Tax Research Unit (TRU) of the union finance ministry issued three circulars on Wednesday with a lot of explanations and clarifications as far as the GST levy is concerned.

While they did discuss a lot of points, one of the circulars spoke about what is the GST levy in case payments are arising out of a breach of contract and it states that one would be liable to pay GST on cancellation of hotel or travel or even entertainment event bookings.This is only in case there is a cancellation charge in case of cancellation of service. This is because the charges are considered as costs for making sure that the service is given to the person and also the costs involved in cancellation of the supply. So, all of them together are considered the consideration for the supply that is promised.


For example, if one books a ticket in the AC first class compartment of a train, then they are liable to pay 5 percent GST. In case they go ahead and cancel that ticket, then Rs 240 fee is applicable. In that case, they will have to pay 5 percent GST on that cancellation fee of Rs 240 as well. That means, they will have to pay Rs 12 extra on the amount they are already paying. This is the case when cancellation charges are levied.


In some of the cases where a seller has taken a deposit from a buyer for a certain transaction say for a property sale, in that case, GST is not applicable because that deposit is forfeited and no GST is applicable to the buyer because here are the forfeiture is a compensation for the  losses suffered and not a consideration.


https://www.cnbctv18.com/economy/gst-applicable...

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Deal Subedar Deal Subedar
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the more gst heights are touching more its giving motivation to leave nation

Pro Community Angel Pro Community Angel
Moderator
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This is not done.. they should add GST on the GST also. 
Deal Subedar Deal Subedar
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Tax Research Unit should be renamed as Loot Research Unit 

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Pro Community Angel Pro Community Angel
Moderator
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This is not done.. they should add GST on the GST also. 
Deal Subedar Deal Subedar
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Tax Research Unit should be renamed as Loot Research Unit 

Finance Ninja Finance Ninja
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Itne bhi acche din nahi laane they sweat_smile
Mobile Guru Mobile Guru
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Kitna lootoge...tax..toll tox ab cancellation pebi GST.. Phone chalanekabi GST lelo ab merese...me deta hu acha bada GST inko rage rolleyes
Deal Cadet Deal Cadet
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MrKool_JJ wrote:
Kitna lootoge...tax..toll tox ab cancellation pebi GST.. Phone chalanekabi GST lelo ab merese...me deta hu acha bada GST inko rage rolleyes
for them cancellation is a service that you availed, so service tax 😄
Deal Subedar Deal Subedar
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the more gst heights are touching more its giving motivation to leave nation

Deal Subedar Deal Subedar
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next you poop give gst, you piss give gst , you used roads give gst, you used buses give gst on tickets etc etc and still no uproar , is this next british raj?

Deal Cadet Deal Cadet
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EkdamSastaRaju wrote:

Tax Research Unit should be renamed as Loot Research Unit 

They must have hired a dimer from Desidime. 😄
Deal Lieutenant Deal Lieutenant
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pranavcool wrote:

next you poop give gst, you piss give gst , you used roads give gst, you used buses give gst on tickets etc etc and still no uproar , is this next british raj?

Gobi ji ne kiya hai to kuch soch samajh k hi Kiya hoga plus1
Pro Critic Pro Critic
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chai_lover wrote:
Gobi ji ne kiya hai to kuch soch samajh k hi Kiya hoga plus1

Chai pe gst soon ..breakup key liye ready raho.

Tech Guru Tech Guru
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Atleast Air we Breathe is still GST free.

#Good Life
Hunk Hunk
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In Germany, every household gives tv n radio tax even if one doesn't have tv n radio in house. 

Finance Ninja Finance Ninja
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Total_Fun wrote:
Atleast Air we Breathe is still GST free.

#Good Life
Air Quality is still very bad in some places,,,you buy air purifier and they charge you taxes there 🤤
Tech Guru Tech Guru
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xxxyyyzzz wrote:
Air Quality is still very bad in some places,,,you buy air purifier and they charge you taxes there 🤤
So even Breathable  air isn't always free.

So tell me, what is Free?
That's what I want to be.
Don't have money
Growing on Tree 🌲
Freedom is tricolor
But when I bleed
Only  Shades of Red I see.



Deal Lieutenant Deal Lieutenant
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waiting for gst for posting on dd

Cool Cool
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kukdookoo wrote:

waiting for gst for posting on dd

And for moderation of that threads too pay gst stuck_out_tongue
Deal Cadet Deal Cadet
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Soon they will bring GST on cashback also

Its not just one political party in a particular state

But several corrupt ppl in system. 
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