A RESORT AND HOTEL PROVIDES ROOM FOR FREE AND COMPLIMENTARY BASIS TO ANY GUEST OF PERSONAL RELATION OF OWNER/ MANAGER/ ACCOUNTANT AND NO AMOUNT IS CHARGED FROM SUCH GUEST. WILL GST BE PAYABLE ON SUCH COMPLIMENTARY ROOMS, PLEASE PROVIDE NOTIFICATION NO?

Reply: Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business is taxable even if made without consideration.

Under section 25(4) of CGST Act,2017 a person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.

Under explanation to section 15 persons shall be deemed to be “related persons” if––

(i) such persons are officers or directors of one another’s businesses;

(ii) such persons are legally recognised partners in business;

(iii) such persons are employer and employee;

(iv) any person directly or indirectly owns, controls or holds twenty-five per cent. or more of the outstanding voting stock or shares of both of them;

(v) one of them directly or indirectly controls the other;

(vi) both of them are directly or indirectly controlled by a third person;

(vii) together they directly or indirectly control a third person; or

(viii) they are members of the same family;