Question5:

This refers to your daily mail on 17.10.2017 regarding news highlights in which it has been stated that the GST rates on AC hotels are going to be reduced. In this regard, it is utmost necessary to change the criteria of place of supply in case of Hotel service. Presently, as per the provisions of Section 12 of IGST Act, place of supply of this kind of service is the location of the hotel. This means that if a taxable person having registration in Maharashtra utilizes this service (Sales and marketing personnel visiting various places across the country for business purpose), he may not be able to avail the ITC since he may not have registration in the state in which the hotel is located. Thus, there is a cascading effect on the GST taxation. A representation in this regard is necessary rather than reduction in taxes.  

Answer:

We agree with your view. We have already sent our representation in this regard and have requested through various forums to the concerned authorities. Some positive response is expected in coming times. (Reply dt.17/10/2017)