18% GST on food-drinks within or away from hotel


M/s. Chalet Hotel Ltd runs the J. W. Marriott Hotel near Chhatrapati Shivaji Maharaj International Airport was planning to launch a business of providing food & beverages for the consumption at the restaurant named ”The Cheaters” which is located in The Orb Mall.


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Both the hotel and the retail arcade (mall) are owned by M/s. Chalet Hotels Ltd. and are interconnected by a private passageway. There is no need to exit the premises for access since both are provided with a common entry gate. The company said that there are no residential or lodging facilities in the mall and all such services like residential or lodging are provided only in the J. W. Marriot Hotel, where the declared tariff is ₹7,500 and above per room on daily basis.


The company submitted that food-beverages provided for consumption in the restaurant premises are a ”supply” which would attract 18% GST if the restaurant is located on the hotel premises. Since the restaurant will be located in the mall which does not offer residence or lodging services and not in the hotel premises, so, GST of only 5% would be applicable.

Over this, the CGST representatives said that ”The Cheaters” is owned and operated in The Orb mall by M/s. Chalet Hotels Ltd., which also owns and operates the J. W. Marriott Hotel on the same plot, there is a common entry gate and both premises (arcade and hotel) are connected by a private passage and the restaurant”s services are primarily intended for the guests of the hotel.

On this matter, the MAAR bench ruled the mall restaurant is located in the same premises as the J. W. Marriot Hotel and owned by the same company and accordingly the 18% GST would be applicable.

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