The Indian government has introduced a crucial update under GST with Notification No. 08/2025-Central Tax (Rate), redefining the concept of “Specified Premises.” This change, effective from April 1, 2025, aims to bring greater clarity and compliance to hotel accommodation services.
What Are “Specified Premises”?
As per the latest notification, premises offering hotel accommodation services with a unit value exceeding ₹7,500 per day will now be categorized as “Specified Premises.” This update ensures a streamlined GST structure for businesses operating in the hospitality sector.
Key Highlights of the Notification:
- Updated Definition: The term “Specified Premises” aligns with the definition provided in Notification No. 11/2017-Central Tax (Rate), dated June 28, 2017.
- Flexibility for Businesses:
- Registered suppliers can declare their premises as “Specified Premises”.
- Alternatively, they can opt-out through the newly introduced declaration formats outlined in Annexures VII, VIII, and IX.
- Effective Date: The revised classification will take effect from April 1, 2025.
Why This Update Matters
The redefinition of “Specified Premises” emphasizes compliance and simplifies the tax structure for businesses. By declaring or opting out as per the prescribed forms, businesses can ensure seamless alignment with GST norms, avoiding potential disputes or penalties.
Steps for Compliance
- Review your premises’ daily unit value for hotel accommodation services.
- File the necessary declaration in the prescribed format (Annexures VII, VIII, or IX).
- Stay updated with GST notifications to ensure timely compliance.
Conclusion
This classification is a welcome step towards streamlining GST processes and ensuring proper adherence to tax laws. Businesses in the hospitality sector should act proactively to meet the compliance requirements before the deadline.
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Published on: January 18, 2025