GST on Banquet hall – Rates, Rules & Billing Explained

Imagine this; Rohit is throwing a shaandaar engagement bash for his sister at a swanky banquet hall in Mumbai. The hall rental costs him ₹1,00,000. Food, decor, lights – sab kuch top-class. But when the final bill lands, his eyebrows shoot up higher than the DJ’s bass drop.

Why? Because of this guy – GST on Banquet hall!

Here’s how the numbers break down:

• Base cost: ₹1,00,000
  
   
• GST (18%): ₹18,000
  
   
• Final bill: ₹1,18,000
   

Boom! Just like that, the tax added the price of an iPhone case to his budget.

That is the power (and pain) of GST on Banquet hall. Whether you are booking a plain hall with no food or a full-blown wedding setup with naach-gaana and chaandi ke thaal, the taxman is always invited.

“Event toh badiya chahiye, par bill mein GST ka tadka samajh ke lagao!”

In this blog, we spill the glitter on everything – tax slabs, hall types, HSN codes, input tax credits, and real-world examples. So grab your chai, because understanding GST on Banquet hall is as essential as booking the DJ on time.

GST on Banquet hall 

Different banquet halls in India offer diverse pricing. The following table summarises typical pricing and tax for GST on Banquet hall services:
 

The table shows how GST on Banquet hall remains constant at 18% irrespective of price. The reader clearly sees tax applied across categories.

HSN Codes for Banquet hall Below is a clear table of HSN codes. These codes help in invoicing and ensure correct GST on Banquet hall treatment.

These HSN codes derive from official classifications used by the Indian government. The reader appreciates accurate references.

Types of Banquet hall and Their GST Applicability 

Now we outline types and GST rates for GST on Banquet hall services:
 

This helps the reader differentiate between supply types and their GST on Banquet hall treatment.

Numerical Example – GST on Banquet Hall with and without Food (Composite Supply Scenario)

Scenario 1: Hall Rental Without Food (Renting of Immovable Property – 18% GST, ITC Eligible)
Mr Mehta books a community banquet hall in Pune for a family engagement function. No food or catering services are involved. The hall owner issues a rental-only invoice.

• Base Price: ₹75,000
   
• GST Rate: 18% (as per Renting of Immovable Property)
   
• GST Amount: ₹75,000 × 18% = ₹13,500
   
• Total Payable: ₹75,000 + ₹13,500 = ₹88,500
   

Since it is a standalone rental, Input Tax Credit is available to the hall provider for decor and infrastructure purchases.

Scenario 2: Standalone Banquet Hall with Food (Composite Supply – 18% GST, ITC Eligible)
Ms Fatima hosts a wedding reception in a private standalone banquet hall in Hyderabad. The hall provides full catering along with rental. This is treated as a composite supply with the principal supply being the rental.

• Combined Base Cost (Hall + Food): ₹2,00,000
   
• GST Rate: 18%
   
• GST Amount: ₹2,00,000 × 18% = ₹36,000
   
• Total Payable: ₹2,36,000
   

As this is not a restaurant-based service but a bundled hall-and-food package, Input Tax Credit is allowed for the hall provider on procurement (lighting, kitchen supplies, staff services).

Scenario 3: Restaurant-Based Banquet Hall with Food (Composite Supply – 5% GST, No ITC)
Mr Iyer reserves a restaurant-attached banquet hall in Chennai for a birthday party. The venue charges for the hall and buffet as a combined service.

• Combined Cost (Hall + Food): ₹1,20,000
   
• GST Rate: 5%
   
• GST Amount: ₹1,20,000 × 5% = ₹6,000
   
• Total Payable: ₹1,26,000
   

Since it falls under restaurant service, Input Tax Credit is not available on this composite supply, as per current GST norms.

Scenario 4: Outdoor Banquet Services (Food in Garden or Tent Venue – 5% GST, No ITC)
Mrs Dutta organises a wedding in an outdoor venue with complete buffet catering. The event manager charges one bundled amount.

• Outdoor Event Package: ₹1,50,000
   
• GST Rate: 5%
   
• GST Amount: ₹1,50,000 × 5% = ₹7,500
   
• Total Payable: ₹1,57,500
   

This service is treated as restaurant-style outdoor catering, which means ITC cannot be claimed.

Scenario 5: Hotel Banquet Hall with Room Tariff Above ₹7,500 (18% GST, ITC Eligible)
Mr and Mrs Kapoor book a banquet in a luxury hotel where room tariffs exceed ₹7,500. The venue charges for both accommodation and event catering.

• Total Bill (Rooms + Banquet + Catering): ₹3,00,000
   
• GST Rate: 18%
   
• GST Amount: ₹3,00,000 × 18% = ₹54,000
   
• Total Payable: ₹3,54,000
   

Because the hotel falls under luxury hospitality category and rooms exceed ₹7,500, the Input Tax Credit is allowed.

“Shaadi ho ya party, GST ka hisaab hai smarti!”

Impact of GST on the Banquet hall Industry with Examples

The mandatory 18% GST on Banquet hall adds significantly to cost. A third party example: Mr Sharma books a mid‑range banquet hall for ₹100 000. He pays ₹18 000 as GST. Total payable equals ₹118 000.

Another person, Ms Kapoor, books hotel banquet hall with room tariff above ₹7 500. She pays ₹250 000 base plus ₹45 000 GST. She is also eligible to claim input tax credit on decor expenses.

Numerical calculation:

• Base price ₹250 000
   
• GST 18% = ₹45 000
   
• Total payment = ₹295 000
   

Similarly, outdoor services at ₹150 000 attract 5% tax. Calculation:

• Base price ₹150 000
   
• GST 5% = ₹7 500
   
• Total = ₹157 500
   

Impact: Consumers feel the GST pinch, but businesses can reduce costs by claiming input tax credit when eligible. Industry finds this strengthens compliance and standardises pricing.

Input Tax Credit (ITC) on Banquet hall

Input Tax Credit enhances financial efficiency and reduces cost burdens. For GST on Banquet hall, ITC works thus:

• A hall provider spends ₹50 000 on decoration. They pay 18% GST (₹9 000).
   
• Claiming ITC saves ₹9 000 on tax liability.
   
• Without ITC, they lose that benefit.
   

Third person example: Ms Singh purchases catering gear worth ₹80 000 plus GST ₹14 400. She claims credit and reduces payment in returns. This enhances business cash flow.

Providers cannot claim ITC when service attracts only 5% GST. This is common in restaurant‑based hall rentals. Thus, understanding GST on Banquet hall with respect to ITC is essential for financial planning.

Conclusion

The GST on Banquet hall remains a vital element of pricing in India. This blog has illustrated how tax varies across categories, how HSN codes are used, what rates apply, calculation examples and input tax credit rules. Third person examples have clarified cost implications for real individuals.

If you want to dive further, register on the official GST portal for compliance filing. Understanding GST on Banquet hall ensures transparent billing, compliant business and informed consumers.

Continue exploring official guidance at gst.gov.in to stay updated on tax developments.

FAQs Related to GST on Banquet hall

Q. What is the GST rate on Banquet hall rentals without food?
A. It attracts 18% GST and ITC is available.

Q. Is there a lower GST rate on restaurant‑based banquet hall with food?
A. Yes, the rate is 5%. ITC is not eligible.

Q. What HSN code applies for standalone banquet with catering?
A. The applicable code is 996334.

Q. How does GST rate vary for outdoor banquet services?
A. Outdoor services attract 5% GST without ITC.

Q. Where can I refer for official GST information?
A. One may visit the official GST portal at www.gst.gov.in for rates, returns and registration.

Q. What is the impact of hotel tariff exceeding ₹7 500?
A. If tariff exceeds ₹7 500, catering attracts 18% GST with ITC eligibility 

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