5% GST payable w/o ITC on Accommodation Service provided by Club for less than Rs. 7500/-, 18% leviable on higher rent with ITC:

The AAR determined that a 5% GST is payable without input tax credit (ITC) on accommodation services provided by clubs if the rent is less than INR 7,500, while 18% is applicable on higher rents with ITC. This ruling aims to streamline the GST application on club accommodations, providing clarity for clubs and their customers. The decision encourages compliance and aims to prevent disputes arising from ambiguous tax obligations.