The notification, issued by the Ministry of Finance, introduces significant amendments to the Central Goods and Services Tax (CGST) framework concerning hotel accommodation services. The changes update definitions and compliance requirements, aiming to streamline the registration and tax filing process for businesses operating in this sector.

Details of the Notification:

1. Substitution of Definition of “Specified Premises”:

• Premises providing hotel accommodation services above ₹7,500 per unit per day in the preceding financial year.
• Premises declared as “specified premises” through filings between January 1 and March 31 of the preceding financial year.
• Premises declared as “specified premises” during registration within 15 days of application acknowledgment.

(a) a premises from where the supplier has provided in the preceding financial year, ‘hotel accommodation’ service having the value of supply of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent; or

(b) a premises for which a registered person supplying ‘hotel accommodation’ service has filed a declaration, on or after the 1st of January and not later than 31st of March of the preceding financial year, declaring the said premises to be a specified premises; or

(c) a premises for which a person applying for registration has filed a declaration, within fifteen days of obtaining acknowledgement for the registration application, declaring the said premises to be a specified premises;”;

Introduction of New Annexures:

1. 1. Annexure VII: Declaration format for registered persons opting for “specified premises” status.
   2. Annexure VIII: Declaration format for new registrants declaring their premises as “specified premises.”
   3. Annexure IX: Declaration format for opting out of the “specified premises” status.

Implementation Timeline:

• Changes come into effect from April 1, 2025.
• Declarations must be filed annually for each financial year.

This notification ensures clarity and standardisation for hotel businesses, aligning GST compliance with declared premises status. It enhances transparency and promotes structured tax compliance, while allowing businesses flexibility to opt-in or opt-out of the specified premises category.