Reg. No. RNP/GOA/32/2024-2026
RNI No. GOAENG/2002/6410
Panaji, 07th April, 2025 (Chaitra 17, 1947) SERIES II No. 1
PUBLISHED BY AUTHORITY
EXTRAORDINARY
GOVERNMENT OF GOA
Department of Finance
Office of the Commissioner of Commercial Taxes
CCT/26-2/2025-26/99 Date: 07-Apr-2025
Sub.: FAQs for clarifying various aspects of 'specified premises' in the context of supply of restaurant services.
Trade Circular
No. 1/2025-26-GST
Attention of Trade, Industry & in particular all registered Taxable Persons under the Central Goods and Services Tax Act, 2017 and the Goa Goods and Services Tax Act, 2017 is hereby invited to the Frequently Asked Questions (FAQs) for clarifying various aspects of 'specified premises' in the context of supply of restaurant services.
M/s. Goods and Services Tax Network has released FAQs for clarifying various aspects of 'specified premises' in the context of supply of restaurant services which has been duly approved by GST Implementation Committee (GIC) and circulated to all the states for further circulation among all the Taxable Persons and Jurisdictional Tax Authorities.
The revised definition of 'specified premises' has come into force with effect from 01/04/2025 as notified vide Notification No. 38/1/2017-Fin(R&C)(05/2025-Rate)/47 dated 16.01.2025, published in the Extraordinary Official Gazette No. 2, Series I, No. 42 dated 16/01/2025.
This GST Trade Circular is issued for circulating the above said FAQs among all the stake holders and the trade and industry. The FAQs are enclosed herewith as Annexure to this Trade Circular. All Stake holders are requested to make use of the FAQs for clarifying their doubts.
Given under the seal of this office
S. S. Gill, IAS, Commissioner of State Tax, Goa.
Suggestions are welcomed on e-mail: [email protected] 15OFFICIAL GAZETTE — GOVT. OF GOA SERIES II No. 1 (EXTRAORDINARY) 07TH APRIL, 2025
Frequently Asked Questions on
'Restaurant Service' supplied at 'Specified Premises'
| Sl. No. | Question | Answer |
| 1 | 2 | 3 |
| 1. | What do you mean by 'specified premises'? | W.e.f. 01.04.2025, the definition of specified premises shall be as under: "Specified premises", for a financial year, means,- (a) a premises from where the supplier has provided in the preceding financial year, 'hotel accommodation' service having the value of supply of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent; or (b) a premises for which a registered person supplying 'hotel accommodation' service has filed a declaration, on or after the 1st of January and not later than 31st of March of the preceding financial year, declaring the said premises to be a specified premises; or (c) a premises for which a person applying for registration has filed a declaration, within fifteen days of obtaining acknowledgement for the registration application, declaring the said premises to be a specified premises; As per the above definition, a premises from which 'hotel accommodation' services, having the value of supply of any unit of accommodation more than Rs. 7,500 per unit per day or equivalent have been supplied in a FY, becomes a 'specified premises' for the subsequent FY. At the same time, a supplier of hotel accommodation service, whether an existing registrant or a new applicant, has also been given an option to declare the premises from which supplies are made/will be made, as a specified premises for a Financial Year. |
| 2. | What is the rate of tax notified by the Government for 'Restaurant Service' supplied in 'Specified Premises'? | Entry 7(vi) of notification No. 11/2017-CTR dated 28.06.2017 prescribes the rate of 18% with ITC for restaurant services supplied at specified premises. For restaurant services supplied outside specified premises, the rate of 5% without ITC is applicable as per entry 7(ii) of notification No. 11/2017-CTR dated 28.06.2017. |
| 3. | What will be the change in the definitions of 'declared tariff' and 'specified premises' pre and post 01.04.2025? | For the period prior to 01.04.2025, "specified premises" shall mean premises providing 'hotel accommodation' services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent. For the period prior to 01.04.2025, "declared tariff" shall mean charges for all amenities provided in the unit of accommodation |
| (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. With effect from 01.04.2025, the definition of "declared tariff" shall be omitted. For the period starting from 01.04.2025, the value of supply of hotel accommodation in the previous FY, i.e., the transaction value charged for the said supply, would be the basis for determining whether the premises providing hotel accommodation service mandatorily falls under the category of 'specified premises' or not in the current FY. The revised definition of 'specified premises', to be brought into effect from 01.04.2025, has been worded accordingly. | ||
| 4. What is the objective The said change is being brought about with the following of the change in the objectives: definition of specified (a) to replace the notion of 'declared tariff' with 'value of premises with effect supply' (i.e. transaction value) in the definition of from 01.04.2025, as specified premises, since the GST rate applicable to notified vide supply of hotel accommodation service is also dependent Notification No. on the value of supply only, in view of the fact that the 05/2025-Central hotel industry has largely moved to a dynamic pricing Tax(Rate) dated model. 16.01.2025? (b) to make the 'specified premises' status of a premises providing hotel accommodation service, in the current FY, dependent upon the 'value of supply' of units of accommodation provided by the premises providing hotel accommodation service in the previous FY. This will give certainty regarding the 'specified premises' status of a hotel for any Financial Year; (c) to give an option to the supplier of hotel accommodation service to declare the premises as 'specified premises' so that the restaurants located in the said premises can avail the rate of 18% with ITC on the supply of restaurant service. | ||
| 5. Who can file a A registered person supplying hotel accommodation service can declaration to declare file a declaration declaring the premises, from which the hotel that a premise is a accommodation services are supplied, to be a 'specified specified premise? By premises', for a financial year. This declaration will be required to which date is the be filed in the format notified as Annexure VII to Notification declaration to be No. 11/2017-CT(Rate) dated 28.06.2017. This declaration will filed? have to be filed between 1st January and 31st March of the financial year preceding the financial year for which the registered person intends to declare the premises as 'specified premises'. A declaration can also be filed by a person applying for registration (who intends to supply hotel accommodation services) declaring the premises, from where hotel accommodation services are to be supplied, to be a 'specified premises'. This declaration will be required to be filed in the format notified as Annexure VIII to Notification No. 11/2017- CT(Rate) dated 28.06.2017. This declaration will have to be filed within 15 days of obtaining acknowledgement (ARN) of the application for registration in FORM GST REG-02. Illustration: 'A' (an unregistered person) is starting a new business wherein he intends to supply hotel accommodation service from his premises and also wants to operate as a 'specified premises'. He applies for GST registration on 02nd May, 2025 and receives ARN number on 02nd May, 2025. He has to file the declaration Annexure VIII, within 15 days, i.e., on or before 16th May, 2025 before the jurisdictional authority. Anyone who is not supplying/intending to supply hotel accommodation service cannot file this declaration. Illustration: A mall owner, who may have rented out part of his mall premises to a supplier of hotel accommodation service as well as to other multiple restaurants operating from his/her mall, would not be eligible to file this declaration as he himself is not a supplier of hotel accommodation service. The supplier of hotel accommodation service operating in this mall can declare the premises from which hotel accommodation services are supplied as a specified premises. This will make the restaurants located in the said hotel premises liable to pay tax at the rate of 18% with ITC. Restaurants located in the mall, but outside the said hotel premises, will not be affected by this declaration, and will continue to pay GST at the rate of 5% without ITC. | ||
| 6. What will be the In order to facilitate ease of compliance, the 'opt-in' declarations validity of the above (Annexures-VII and VIII of Notification No. 11/2017-CT(Rate)) declarations? will be valid until the taxpayer decides to 'opt-out' by filing a declaration in Annexure IX of the same Notification declaring that the premises shall not be a 'specified premises'. This 'opt-out' declaration shall have to be filed between 1st January and 31st March of the financial year preceding the financial year from which the taxpayer wants to 'opt-out'. Similar to the 'opt-in' declaration, the 'opt-out' declaration shall also be valid until the taxpayer decides to 'opt-in' again using the declaration in Annexure-VII. The above mechanism of 'opt-in' and 'opt-out' will obviate repeated annual filing of these declarations before the beginning of each Financial year. It is emphasized that the status of a premises as a 'specified premises' or 'not a specified premises' shall remain the same for the entirety of a financial year (or, in case of new registrations, for the remainder of the financial year) and cannot be changed during the financial year. The 'opt-in' and 'opt-out' declarations, which are to be filed between 1st Jan and 31st March of any FY, shall take effect only from 1st of April of the next FY. Illustration: 'A' is a supplier of hotel accommodation service who has not supplied any unit of accommodation at value of supply above Rs. | ||
| 7500/- in the FY 2025-26. However, 'A' would like to operate as a 'specified premises' for FY 2026-27 till FY 2029-30. Thereafter, from FY 2030-31 onwards, 'A' does not want to operate as a 'specified premises'. 'A' has to file opt-in declaration (Annexure VII) between 1st January, 2026 and 31st March, 2026 and the declaration will be valid for the subsequent years. 'A' has to file opt-out declaration (Annexure IX) anytime between 1st January, 2030 to 31st March, 2030, so that he shall no longer be a 'specified premises' for FY 2030-31 onwards. | ||
| 7. I am a supplier of If you have supplied a unit of accommodation at value above Rs. hotel accommodation 7,500/- in the preceding financial year, then you automatically and service, and I had mandatorily fall under the scope of 'specified premises' for the supplied a unit of current financial year, and you need not file a declaration to this accommodation at effect. value of supply above Rs. 7,500/- in the preceding financial year. Do I automatically fall under the category of 'specified premises' in the current Financial Year, or was I required to file a declaration to this effect before the beginning of the current financial year? | ||
| 8. In case I have not You can do so by filing a declaration (Annexure VII of supplied any unit of notification No.11/2017-CTR dated 28.06.2017) between 1st accommodation at January and 31st March of the current financial year. value above Rs. 7,500/- in the current financial year, and I still want to fall under the scope of 'specified premises' for the next Financial Year, how can I do so? | ||
| 9. What will be the The declarations for FY 2025-26 shall be filed modality of filing the physically/manually before the jurisdictional GST authorities till above declarations? the time electronic filing of these declarations is enabled. | ||
| 10. Can I email/post my Yes. You are allowed to submit the declaration forms through declaration to the email or post. In such case, dated acknowledgement shall be issued to you in the same mode. | ||
| jurisdictional authority? | ||
| 11. Do I (supplier of hotel (i) For registered persons supplying hotel accommodation accommodation service service) need to file a No. Once a declaration as per Annexure VII is filed in declaration every year the preceding year, the said declaration will apply to the to continue to current year and subsequent Financial Years also, unless function as a the person declares the premises as not a 'specified 'specified premise'? premises' by filing another declaration in the format specified at Annexure IX. (ii) For a person applying for registration Once a declaration as per Annexure VIII is filed, the said declaration will be valid from the effective date of registration for the remainder of the current year in which the person has applied for registration and it will apply to the subsequent Financial Years also, unless the person declares the premises as not a 'specified premises' by filing another declaration in the format specified at Annexure IX. | ||
| 12. Can I file a Yes. The declaration Annexure VIII can be filed within 15 days declaration at the time of obtaining an acknowledgment for the registration application in of obtaining a new FORM GST REG-02, and it shall remain valid from the effective GST registration? date of registration for the remainder of the Financial Year and shall apply to the subsequent Financial Years also, unless the person declares the premises as not a 'specified premises' by filing another declaration in the format specified at Annexure IX. However, it may be noted that since the revised definition of 'specified premises' will come into effect only from 01.04.2025, hence any declarations filed in Annexure VIII before 31.03.2025, by persons applying for registration, will only be effective for FY 2025-26 onwards. | ||
| 13. I am a supplier of The declarations as per Annexure VII/IX apply to only one hotel accommodation premises, and the supplier of hotel accommodation service shall service having have to file separate declarations for each of the premises from multiple premises where hotel accommodation service is supplied. under a single GST registration. I have It may also be added that any premises from which hotel not supplied any unit accommodation service for any unit has been provided for a value of accommodation at of supply of greater than Rs. 7500 in the preceding financial year, value above Rs. automatically and mandatorily becomes 'specified premises' for 7,500/- in the the current financial year and no declaration needs to be filed for preceding financial such premises. year from any of the premises. Does the declaration filed as per Annexure VII/IX apply to all my premises? Or do I have to file separate declarations for each of my premises? | ||
| 14. | I am a supplier of hotel accommodation service having multiple premises under a single GST registration. In FY 2025-26, I have supplied a unit of accommodation having value of supply more than Rs. 7,500 from only one such premises. Will all of my premises automatically and mandatorily become specified premises for the next FY, i.e. FY 2026-27? | No, only that premise from which you have supplied a unit of accommodation having value of supply more than Rs. 7,500 will automatically and mandatorily become a specified premises for FY 2026-27. This will not affect the 'specified premises' status of your other premises. |
| 15. | I am a registered supplier of hotel accommodation service and have started providing hotel accommodation services from a new premises which I intend to operate as a 'specified premises'. Which declaration should I file? | For a new premises providing hotel accommodation service being set up by a registered supplier of hotel accommodation service, which the supplier wishes to operate as a 'specified premises', the person shall have to file declaration in Annexure VIII and the declaration shall be valid for the remainder of the financial year and for subsequent Financial Years also, unless the person declares the premises as not a 'specified premises' by filing another declaration in the format specified at Annexure IX. |
| 16. | I am a supplier of hotel accommodation service having multiple premises and am applying for GST registration for all such premises. Does the declaration (Annexure VIII/IX) apply to all my premises? Or Do I have to file separate declarations for each of my premises? | The declarations (Annexure VIII/IX) apply to only one premises, and the person applying for registration shall have to file separate declarations for each of his premises as per his decision to operate each of his premises as a 'specified premises' or not. |
| 17. | If I have multiple premises from which I supply hotel accommodation service, and some of them are 'specified | As per entry at Sl. No. 7(ii) of Notification No. 11/2017-CT(Rate) dated 28.06.2017, the rate of GST applicable on restaurant services other than at specified premises is 5% without ITC, subject to the condition that the credit of input tax charged on goods and services used in supplying the service has not been taken. Read with Explanation (iv) of the said Notification, this |
| premises' while others means that credit of input tax charged on goods or services used are not, what will be exclusively in supplying restaurant services other than at specified the treatment of input premises should not be taken and credit of input tax charged on tax goods or services used partly for supplying restaurant services other than at specified premises and partly for effecting other charged on goods and services (including restaurant services at specified premises), is services used in reversed as if supply of restaurant service other than at specified supplying the premises is an exempt supply. restaurant service at these premises? | ||
| 18. I am a supplier of The address of the premises providing hotel accommodation hotel accommodation service inside the mall, declared in Annexure VII filed by the service, having supplier of hotel accommodation service, becomes a 'specified premises inside a premises' by virtue of the declaration filed. Restaurants located mall. I have not inside the said address have to charge GST @18% for restaurant supplied any unit of services being supplied from 'specified premises'. accommodation at Therefore, Restaurant 'X' shall have to charge GST @18% with value above Rs. ITC for their restaurant services. 7,500/- in the Restaurant 'Y' is not located within the address declared by the preceding financial supplier of hotel accommodation service who has filed Annexure year in the said VII. premises and have Therefore, restaurant 'Y' is not located in the 'specified premises' declared the said and therefore, shall have to charge GST @ 5% without ITC for premises to be a their restaurant services. 'specified premises' by filing Annexure VII. I operate two restaurants from the said mall. Restaurant 'X' is located inside the premises from where I supply hotel accommodation service for which I have filed a declaration as per Annexure VII, and Restaurant 'Y' not located inside the said premises, but located in the same mall. What would be the applicable GST rate for restaurant service supplied by restaurant 'X' and restaurant 'Y'? | ||
| 19. I have filed Annexure Annexure VIII declares a premises as 'specified premises' from VIII declaring my the effective date of registration for the remainder of the financial premises as 'specified year in which the person has applied for GST registration. premises' while applying for GST Annexure IX cannot be filed to opt out for the said financial year. registration. Can I opt Annexure IX can be filed by the person to opt out of being a out of it by filing 'specified premises' for the subsequent financial year. Annexure IX? | ||
| 20. I am a registered You should file an opt-out declaration before the same supplier of hotel jurisdictional GST authority before 31st March, 2025. It may be accommodation noted that you shall not be allowed to file another opt-in service who has not declaration after you have filed the above opt-out declaration. supplied any unit of accommodation having the value of supply above Rs. 7500 in the current FY 2024-25. However, I want to declare my premises as specified premises for FY 2025-26. Therefore, I filed an 'opt-in' declaration in Annexure VII before the jurisdictional GST authority on 5th February, 2025. However, subsequently, I changed my mind and now want to withdraw the said declaration so that my premises is not a 'specified premises' for FY 2025-26. What should I do? | ||
| 21. I am a registered You should file an opt-in declaration before the same supplier of hotel jurisdictional GST authority before 31st March, 2026. It may be accommodation noted that you shall not be allowed to file another opt-out service who has declaration after you have filed the above opt-in declaration. declared his premises as a 'specified premises' for FY 2025-26. To change the status of my premises for FY 2026-27, I filed an 'opt-out' declaration in Annexure IX before the jurisdictional GST authority on 5th February, 2026. | ||
| However, subsequently, I changed my mind and now want to withdraw the said declaration so that my premises is a 'specified premises' for FY 2026-27. What should I do? | ||
| 22. Revised definition of The revised definition of 'specified premises' shall come into 'specified premises' force w.e.f. 01.04.2025. However, in order to enable filing of are to come into force declarations for FY 2025-26, the opt-in and opt-out declarations, have been brought into effect from 16.01.2025 vide Notification with effect from 01st No. 05/2025-CT(Rate) dated 16.01.2025. April, 2025. This declaration (Annexure VII) can be filed physically/manually When can I file a before the jurisdictional authority anytime till 31st March, 2025. declaration to opt-in to operate as a The option to opt-out, in case of change in decision, also can be 'specified premises' filed before 31st March, 2025 before the jurisdictional authority. for the FY 2025-26? For a person, who has applied for or has obtained registration during the period 16th January, 2025 to 31st March, 2025, the person shall have to file declaration (Annexure VIII) before the jurisdictional authority anytime between 16th January, 2025 and 31st March, 2025. Annexure VIII in this case would apply for the subsequent FY i.e., FY 2025-26 and would not be applicable for FY 2024-25, as the revised definition of 'specified premises' shall come into force only from FY 2025-26 onwards. Further, once opted in for FY 2025-26 by filing Annexure VIII, such person shall not be able to opt-out for the FY 2025-26. For a person who has applied for registration after 01st April, 2025, s/he shall have to file declaration (Annexure VIII) before the jurisdictional authority and the declaration shall be valid for the remaining period of the financial year in which the person has applied for registration, i.e., FY 2025-26. The declaration shall continue to be valid for subsequent years unless the person declares the premises to not be a 'specified premises' by filing a declaration in the format specified at Annexure IX. | ||
| 23. Are the revised Yes, the revised definition of 'specified premises' is also provisions of applicable for determining the rate applicable on catering 'specified premises' services, as specified at Sl. No. 7 of Notification No. 11/2017- also applicable to CT(Rate) dated 28.06.2017. catering services? | ||
| 24. For the financial year For a supplier of hotel accommodation service, who has supplied 2024-25, I have any unit of accommodation for more than Rs. 7500 per unit per supplied at least one day or equivalent in the preceding year (2024-25), he is unit of mandatorily a specified premises for the current financial year, accommodation i.e., in this case for financial year 2025-26. The premises is a service for more than specified premises owing to the mandatory condition being Rs. 7500 per unit per satisfied in the preceding year. day or equivalent. Therefore, I would mandatorily be a However, since the supplier of hotel accommodation service has specified premises for not supplied any unit of accommodation having value of supply financial year 2025- more than Rs. 7500/- per unit per day or equivalent in the 26. financial year 2025-26, the premises would not be mandatorily a specified premises for the next financial year 2026-27. However, However, in the in view of the revised definition of specified premises, the financial year 2025- supplier can declare the premises to be a specified premises by 26, I have not filing a declaration as per Annexure VII. If he chooses to not file supplied any unit of any declaration, then, by default he would not be a specified accommodation premises for the year 2026-27, as he does not satisfy the having value of mandatory condition. There is no requirement to file any supply more than declaration to the effect that the premises is not a specified Rs. 7500 per unit per premises in such cases. day or equivalent. Would I have to file any declaration to ensure that I am not a specified premises for the financial year 2026-27? | ||
| 25. For the financial year Even though you did not supply any unit of accommodation 2025-26, I filed an having value of supply more than Rs 7500 in FY 2025-26, you opt-in declaration, will not automatically revert to not being a 'specified premises' declaring my for FY 2026-27, since you had filed an 'opt-in declaration' for FY premises as specified 2025-26. In this case, you will have to file an opt-out declaration premises for the said for FY 2026-27, between 1st January, 2026 and 31st March, 2026. financial year, and for subsequent years. However, I did not supply any unit of accommodation having value of supply more than Rs. 7500 in FY 2025- 26. I do not want my premises to be a 'specified premises' for FY 2026-27. What am I required to do? | ||
| 26. Is it mandatory that I Yes. For a registered supplier of hotel accommodation services, should file my the declarations have to be filed within the time period of 1st declaration for next January, to 31st March of the preceding financial year. No grace financial year before period is given for filing the declaration. The timelines are to be 31st March of the strictly adhered to. The status on 31st March, would be taken as preceding financial the final declaration. year? | ||
| 27. | Where are the declarations (Annexure VII, VIII and IX) available? | Apart from the Notifications, the declaration forms have also been made available on the CBIC website under Trade Facilitation > Improving Ease of Doing Business (https://www.cbic.gov.in/ /entities/cbic-content-mst/MTE5) |
| 28. | Who will give the acknowledgment for the declaration filed? | Dated acknowledgment shall be given by the jurisdictional authority on receipt of declaration forms submitted by the suppliers of hotel accommodation service. At the time of submission of declaration form, jurisdictional authorities may only verify the completeness of the declaration and issue dated acknowledgement, without scrutinizing other aspects of the declaration, including whether the taxpayer is eligible to file the declaration or not. The declaration may be treated as filed on 'self-assessment' basis. |
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