Accommodation Services Offered to RBI Officers Taxable at 12% GST: WBAAR

Accommodation Services Offered to RBI Officers Taxable at 12% GST: WBAAR

The applicant, Orsino Hotels & Resorts LLP, is a hotel business operating through its property called Orsino Spa Resort in Darjeeling. The applicant has signed an agreement with the Reserve Bank of India (RBI) on March 19, 2025, which is valid from 1st April 2025 to 31st March 2026. Under this contract, the applicant is obligated to offer continuous accommodation services to RBI officers and their families with a minimum of two double-bedded “Premium Rooms” per day at a pre-agreed rate. The applicant has sought an advance ruling before the West Bengal Authority for Advance Ruling (WBAAR) for the following questions:

(i) Whether the accommodation services provided by the applicant to RBI, having a room tariff of less than Rs 7500 per day per unit, as part of the agreement for providing accommodation (rooms) services to RBI staff, are taxable under GST at the rate of 12%?

(ii) If not, under which HSN code and tax rate will the services be taxed?

As per the WBAAR, the accommodation services provided to RBI are less than Rs 7,500 per day, and therefore, they are taxable at 12% GST.