Gst On Weddings: A Complete Guide To Tax-savvy Celebrations

By Author: TaxHelpdesk
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Major Goods and Services Subject to GST
Weddings encompass a mix of goods and services such as:
Apparel for the bride, groom, and relatives
Jewelry
Food and catering services
Venue rentals
Décor and floral arrangements
Makeup and styling services
Each of these attracts GST as per the rates prescribed by the government, making it essential to account for these taxes while budgeting for the big day.

Key GST Rates to Remember
1. Venue Rentals Without Catering Services
If the venue is rented out on a standalone basis without catering services, GST is charged at 18%, irrespective of whether the venue is part of a hotel or not.
2. Venue Rentals With Catering Services
If the venue includes catering services and the room tariff is below ₹7,500 per day, GST is applicable at 5%.
If the room tariff exceeds ₹7,500 per day, GST is charged at 18%.
3. Standalone Catering Services
Hiring catering services separately usually attracts GST at 5%.
GST Impact: A Practical Example
Let’s consider two scenarios:
Scenario 1:
Mr. ...
... Bajaj rents a venue without catering services for ₹1,00,000 for his daughter’s wedding. The GST payable is:
Venue GST: 18% of ₹1,00,000 = ₹18,000
Additionally, he hires a caterer for ₹1,00,000, attracting GST at:
Catering GST: 5% of ₹1,00,000 = ₹5,000
Total GST Payable: ₹18,000 + ₹5,000 = ₹23,000
Scenario 2:
Mr. Kapoor hires the same vendor for both venue and catering services, with a total cost of ₹2,00,000. The GST applicable is:
Combined GST: 5% of ₹2,00,000 = ₹10,000
By consolidating services, Mr. Kapoor saves ₹13,000 in GST compared to Mr. Bajaj.
Pro Tips for Managing GST on Wedding Services
Evaluate Combined vs. Separate Services:
Hiring a single vendor for venue and catering may reduce the overall GST liability.
Segregate Billing:
If opting for one vendor, ensure separate contracts or bills for different services like venue, catering, and décor. This can help optimize tax benefits.
Analyze Cost-Effectiveness:
In some cases, engaging separate vendors for specific services like photography, décor, or catering might be more economical, even if it results in varied GST rates.
For more information or assistance with these updates, feel free to connect with TaxHelpdesk. Whether you need our services or have questions, we’re here to help.
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