Hospital Room Rent Exempt From GST

New Delhi Aug 30: A clarification was issued yesterday.
Central Board of Excise and Customs (CBEC) yesterday has clarified that
"Rent paid by patients for hospital rooms will be exempted from the Goods and Services Tax GST".

Yesterday the tax officials have clarified various issues on tax rates under GST. The following clarifications are issued.

* The tax on rooms in the hotel, guest house or inns will be payable on
the actual amount charged and not on declared or published tariff.

* Declared or published tariff is relevant only for the determination of
the tax rate slab.

* No GST is applicable on room tariffs of less than Rs 1,000.

# 0 % GST would be applicable on room rent below Rs 1000

# 12 per cent tax on Hotel rents between Rs 1,000 and Rs 2,500

# 18 Percent GST on room rents between Rs 2,500 and Rs 7,500.

# A GST of 28 per cent will be charged on tariff greater than Rs 7,500.

* Customers have to pay GST according to the tax slab of the tariff on the entire amount.

* people must pay GST according to Highest amount charged if different tariff is declared at different places.

* Serving of food or drinks, including by a bakery would attract 5 per cent GST rate

* 28 % GST would be applicable on following entertainment activities

# admission to entertainment events.

# access to amusement facilities, theme parks, water parks, joy rides,
go-carting, casinos, race-course, ballet.

# sporting event such as IPL

# Entry into casinos, and betting.

Finally, many patients are relieved because of the clarification issued.The government has exempt tax on hospital beds because health and education services are exempt from GST.