“Specified premises”, for a financial year, means,-

(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;

As per the above definition, a premises from which ‘hotel accommodation’ services, having the value of supply of any unit of accommodation more than Rs. 7,500 per unit per day or equivalent have been supplied in a FY, becomes a ‘specified premises’ for the subsequent FY.

At the same time, a supplier of hotel accommodation service, whether an existing registrant or a new applicant, has also been given an option to declare the premises from which supplies are made/will be made, as a specified premises for a Financial Year.

For restaurant services supplied outside specified premises, the rate of 5% without ITC is applicable as per entry 7(ii) of notification No. 11/2017-CTR dated 28.06.2017.

For the period prior to 01.04.2025, “declared tariff” shall mean charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

With effect from 01.04.2025, the definition of “declared tariff” shall be omitted.

For the period starting from 01.04.2025, the value of supply of hotel accommodation in the previous FY, i.e., the transaction value charged for the said supply, would be the basis for determining whether the premises providing hotel accommodation service mandatorily falls under the category of ‘specified premises’ or not in the current FY. The revised definition of ‘specified premises’, to be brought into effect from 01.04.2025, has been worded accordingly.