Impact of Rajasthan Budget, 2015 on Hotels & Restaurants

Posted By on March 10, 2015

We are enclosing the Rate of VAT and Luxury Tax on Hotels and Restaurants in Rajasthan applicable after the State Budget, 2015.

ATTENTION – These changes in rates are applicable with immediate effect i.e. 09-03-2015.
The major changes are:-
1. Peak Rate of VAT has been increased from 14% to 14.50%.
2. Cooked food like Pizza, burgers, fried chicken, French fries, sandwich, hot dog, noodles, potato chips, bakery items and any other cooked food items served and sold including home delivery thereof OTHER THAN under a brand name by any branded chain outlet of cooked food shall be taxed under VAT at applicable for other cooked food instead of peak rate of 14%. Therefore going forward these items will be charged @5% in all hotels where the rate of VAT for cooked food is 5%.
3. Luxury Tax will be exempted during off-season of May to July instead of 50% rate charged in off season previouslyHOTEL INDUSTRY - VAT & L.T. AFTER BUDGET 2015-page-001 HOTEL INDUSTRY - VAT & L.T. AFTER BUDGET 2015-page-002

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The Views expressed on this blog are strictly personal and for knowledge of our clients only. The contents of this blog are solely for informational purpose and it does not constitute any professional advice or recommendation. The laws related to GST and other taxes are under evolution and subject to constant changes and amendments over time. It is suggested to take specific legal advice and necessary due diligence before relying on the contents and information of this Blog. The authors of this blog, does not accept any liabilities for any loss or damage of any kind arising out of information on this blog and for any actions taken in reliance thereon.