Why GST Compliance Matters for Your Banquet Hall
Since GST implementation in 2017, Indian banquet halls face strict compliance requirements. Getting it wrong means penalties (₹10,000-₹25,000), interest charges, lost Input Tax Credit, and potential legal action.
This guide ensures your venue operates in full GST compliance with correct tax rates, proper invoicing, and timely filing.
Applicable GST Rates for Banquet Services
18% GST - Standard Rate
Applies to: Hall rental, event setup, decoration, AV equipment, event coordination (SAC 996391)
5% GST - Food & Beverage
When it applies: Food served in banquet hall (not takeaway), no alcoholic beverages, restaurant service criteria met
18% GST on: Alcoholic beverages, food in AC restaurants with liquor license
12% or 18% GST - Accommodation
- NIL: Room tariff below ₹1,000/day
- 12%: ₹1,001 to ₹7,500/day
- 18%: Above ₹7,500/day
Mandatory GST Invoice Requirements
Your invoice MUST include:
- Sequential invoice number (BQ/2024-25/001)
- Your 15-digit GSTIN
- Business name & registered address
- Client name, address & GSTIN (for B2B)
- Service description with SAC code (996391)
- Taxable value before GST
- CGST & SGST (intrastate) or IGST (interstate)
- Total amount including tax
- Reverse charge indication (usually "No")
- Authorized signature
Input Tax Credit (ITC) - What You Can Claim
Claimable ITC:
- Furniture & equipment (tables, chairs, stages)
- Audio-visual equipment purchases
- Renovation & maintenance services
- Electricity bills (business use)
- Marketing & advertising
- Professional fees (CA, legal)
- Office supplies
NON-Claimable ITC:
- Food & beverages (blocked under GST law)
- Motor vehicles (unless for goods transport)
- Immovable property construction
- Personal expenses
GST Return Filing Schedule
Monthly Returns (turnover > ₹5 crore)
- GSTR-1: Outward supplies - Due 11th of next month
- GSTR-3B: Summary with tax payment - Due 20th
Quarterly Returns (₹1.5-5 crore turnover)
- GSTR-1: Quarterly with monthly IFF
- GSTR-3B: Monthly filing required
Annual Return
- GSTR-9: Due 31st December (next FY)
- GSTR-9C: Reconciliation (>₹5 crore, CA certified)
Common GST Mistakes to Avoid
❌ Wrong Tax Rate Application
Charging 18% on everything including food. Correct: 5% on food (if eligible), 18% on venue/services.
❌ Missing Client GSTIN
Not collecting GSTIN for corporate bookings. Impact: Client cannot claim ITC, disputes arise.
❌ Late Return Filing
Penalty: ₹50/day (₹20 for nil returns) plus interest on outstanding tax.
How BanquetPro Automates GST Compliance
- Auto Tax Rates: Correct GST applied based on service type
- Compliant Invoices: All mandatory fields auto-populated
- GSTIN Management: Store & verify client GSTINs
- ITC Tracking: Identify eligible vs non-eligible ITC
- Filing Reports: GSTR-1 and GSTR-3B ready data
- Deadline Alerts: Never miss filing dates
Compliance Checklist
- ☐ Valid GST registration displayed
- ☐ Correct tax rates by service type
- ☐ All invoice mandatory fields present
- ☐ Sequential invoice numbering
- ☐ Client GSTIN collected (B2B)
- ☐ ITC claimed only on eligible purchases
- ☐ Monthly/quarterly filing on time
- ☐ Records maintained 6+ years
- ☐ Regular GSTR-2A/2B reconciliation
- ☐ Annual CA review
👉 See how BanquetPro automates GST compliance - Book a demo