The government has revised GST rules for restaurant & catering services in hotels, effective April 1, 2025, via Notification No. 05/2025-CT (Rate). Key points:
🔹 ‘Specified Premises’ Re-defined:
Now based on actual transaction value (Rs. 7,500+ per day per unit), not ‘declared tariff’.
🔹 Who Qualifies:
- If your room rent exceeded ₹7,500/day last FY → auto-specified premises
- If not, you can opt-in via a declaration (Jan 1–Mar 31)
- New registrants can file within 15 days of registration
🔹 Tax Impact:
- Restaurant services in specified premises → 18% GST + ITC allowed
- Non-specified premises → continue at 5% GST (no ITC)
🔹 Opt-In/Opt-Out Validity:
- Once declared, status stays for the full FY
- Can opt-out before FY begins (Jan–Mar only)
🔹 Declarations:
- Manual for FY 2025-26 (until online option starts)
- Premises-specific (even under same GSTIN)
You can read the full article here:Â https://www.taxmann.com/research/gst-new/top-story/105010000000026418/revised-gst-framework-for-restaurant-services-in-specified-premises-key-changes-effective-from-april-1-2025-experts-opinion
A copy of the article is also attached for your convenience.
READ THE FULL ARTICLE TO STAY INFORMED AND WOULD LOVE TO HEAR YOU THOUGHTS!
(The author is a practicing advocate, Co-Founder and Legal Head of RB LawCorp.
He specializes in GST law. Suggestions or queries can be directed to
ashsharma@rblawcorp.in. The views expressed in this article are strictly
personal.)
