GST in India

[Ayesha2]

1. Should I add GST to my base rate?

2. Or is Airbnb going to add it when they send our quote to the guest?

3. Is Airbnb paying out the GST to the government on our behalf if we do not have a GST number?

4. If we have a GST number will Airbnb send us the money to pay the GST ourselves?

5. Will Airbnb still be adding & paying Occupancy Tax besides GST?

6.So far all bookings made after July 1st do not have a GST added automatically. Only the OC. Why is that?

7. Why does'nt Airbnb add a Tax Window in which we can fill in the percentage of tax to be added to our quotes?

Please get back to me with clear answers.

Cheers...Ayesha

[Sangram0]

I would also like to add:

- How does Airbnb handle GST for services provided across state borders?

My case - I'm living in Chandigarh, as listed in my Income Tax return, and my commercial rental income within Chandigarh is below 20 Lakhs. I have listed my flat in Goa on Airbnb. Now a basic reading of the GST law says that since I'm providing a cross border service I should be registered with GST and should pay GST to the Govt. However, I have come across a mention on the Airbnb website that they (Airbnb) will collect the tax and deposit it with the Govt.  Will Airbnb be giving me a receipt/statement listing all the GST that they have deposited with the Govt? Tomorrow,  what if I get a notice saying that since I am providing the service across state borders then I am liable to pay the tax and the tax deposited by Airbnb would not be considered. 

Airbnb knows my present location since I have updated it on my profile. They also know the location of my listed property because that has been mentioned in the listing. Therefore they can very easily figure out that I'm providing a service across state border and what GST implications this would have.

One gets the sense that Airbnb have been a little sloppy about this whole migration to GST.  

[Nidhi0]

Hello,

Airbnb should remit the GST amount to tax authorities on behalf of the host if the host is below 20 Lakh threshold.

What if the host is above the treshold ?

And the supporting document for depositing GST amount to tax authorities is the basic requirement for our Income Tax auditors.

How will the GST amount paid to tax authorities decrease our GST liability ? is it through input tax credit ? If so, Airbnb should allot the GST amount to our GST Number, which Airbnb haven't yet collected.

Hope, Airbnb opens a seperate window or tab to address this issue on priority basis.

Regards

Nidhi

[Naresh8]

Once host crosses the threshold of 20 lakhs, host must register for GST and submit GST registration number to Airbnb. Airbnb must then transfer the total amount including GST to the host because the host is required by law to remit the GST to the GST authorities.

I need a clarification to this effect from Airbnb

[Gurpreet1]

True guest not happy with such high prices get not applicable to residential properties

[Peter543]

Lkie to also add the there is no GST number provided on any of the invoices that they provide us which leaves us liable to pay GST but its mentions that the price is inculed of GST and other taxes ? so we are as the customer on the losers end paying double taxes ? I hope Airbnb comes out clear on this issue or provide us with their GST number.

[Kishore0]

Renting out residential property is exempt from GST (you can see it in the exemption list) On what basis Airbnb is charging GST? 

[Tajendra0]

Also below 20 lakhs is exemp from GST but Airbnb is adding GST which is making my listing uncompititive just the reason small players have been given exemption to help them compete.

[Kishore0]

EXPERT OPINION ON GST BY ARIBNB:

As per a knowledgeable person, aribnb is legally right in charging GST to the guest since billing is done by airbnb and the billings done by airbnb goes in crores of INR.

But the whole model will be uneconomical to the guest.

Aribnb has to find a way out!!

[Kalawati-Homes0]

Hi, I am a host based in Himachal. Before gst my listing attracted a service tax rate of 9% flat. Then it became 28% for listings above 7500. Which is the same rate 5 star hotels pay. But those hotels accomodate 2 people and give 1 room in that price. I am acommodating 5-12 people giving entire appartments. So how do I fall in the category with luxury hotels in Airbnb India's interpretation? Now as if it already wasn't a unfair disadvantage for me catering to big groups. Today I noticed suddenly airbnb is charging my potential customers an insane 36%. This rate simply makes no sense and is suicidal for bnb future in India. Instead of being so self destructive why can't airbnb stop charging gst on my behalf if they are so clueless about it? I am pretty sure if I pay gst by myself it will certainly be much less than 36% or even 28%.

[Reshabh0]

That is exactly my concern. Say, I am listing a 8000 Rs property of 9 rooms, it essentially comes down to less than Rs 1000 per room. This should attract NIL GST. But Airbnb takes the whole rent into account and calculates on the basis of that which is not only depriving us out of business but Airbnb itself. 

Moreover, I sought an expert opinion on whether there is a system of getting reimbursed from GOI for the Occ taxes charged by bnb (for turnover <20 lakhs) and he told me that it is only possible in case of Goods and not for services. GOI advises businesses to not pay tax on services in the first place if they are not going to exceed the given turnover. 

I have written this all to Airbnb and yet they don't have an answer. For some reason they keep forwarding my mail to so called experts who return to me with an answer I had read already in Help centre. 

[Jimmy36]

@Ayesha2 @Kalawati-Homes0 @Tajendra0 @Kishore0 @Peter543

All,

With the introduction of GST by the Indian government few months ago, things are little more complicated than it used to be. 

Please refer to the below link very carefully. It is by Airbnb and is specifically about GST in India and how it will impact overall rates. 

https://www.airbnb.co.in/help/article/1991/guidance-on-gst-for-india-hosts

I would adivse someone to be in contact with Airbnb right away should you find any discripancy or need further clarification. Because this is quite a complex matter and just by discussing here within the community, no one will arrive to any conclusion. 

I hope that helps.

Thank you!

[Kishore0]

Hi

Airbnb is not following the GST with application of mind. 

There have been objections to GST imposed by Airbnb in various forums ( including in my meet with arbnb St MTDC conference)

Airbnb is all set to lose tourist traffic to guests wanting a HomeStay in India to other websites.

Hope economics prevail

[Kishore0]

Finally, a good nite by Airbnb.  Please ignore my above post.

We have a good clarification in various issues pertaining to GST. NO GST ON LESS THAN rs. 20 lacs

However, my view is that HomeStay, if licensed, is a purely residential activity and hence not covered by GST

https://www.airbnb.co.in/help/article/1991/guidance-on-gst-for-india-hosts

[Kishore0]

Reading the airbnb note on GST leaves me more confused every time i revisit it. I have put a comment that the note is misleading.

airbnb will lose out in the Indian market place by making it tough for the tourist.