Introduction
The GSTN has enabled electronic filing of Opt-In Declarations for Specified Premises under Notification No. 05/2025 – Central Tax (Rate), dated 16th January 2025. This facility applies to taxpayers supplying hotel accommodation services who wish to declare their premises as “specified premises” And pay 18% GST with ITC.
What is meant by “Specified Premises”?
W.e.f. 01.04.2025, the definition of specified premises shall be as under: “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.
What is the GST applicability for supply in “Specified Premises”?
Entry 7(vi) of notification No. 11/2017-CTR dated 28.06.2017 prescribes the rate of 18% with ITC for restaurant services supplied at specified premises.
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.
Why has GSTN introduced the requirement of filing a declaration for “Specified Premises”?
- Before 01.04.2025:
- “Specified premises” referred to hotel accommodation services where the declared tariff of any unit exceeded ₹7,500 per unit per day (or equivalent).
- “Declared tariff” meant the published charges for the unit, inclusive of all amenities such as furniture, air conditioning, refrigerators, or other facilities. Discounts offered on published charges were not excluded from this definition.
- From 01.04.2025 onwards:
- The concept of “declared tariff” has been removed.
- The transaction value (actual value of supply charged in the previous financial year) will now determine whether a hotel accommodation premise qualifies as a “specified premise” in the current financial year.
- The revised definition of “specified premises” has been aligned with this change.
- Compliance implication:
- Taxpayers providing hotel accommodation services must file the declaration if they intend to classify their premises as “specified premises.”
- Filing the declaration is necessary to levy GST at 18% and to claim Input Tax Credit (ITC).
Filing of declarations for “Specified Premises”:
1. Eligibility
- Eligible:
- Regular taxpayers (active or suspended) supplying hotel accommodation services.
- Applicants for new GST registration declaring premises as specified premises.
- Not eligible: Composition taxpayers, TDS/TCS taxpayers, SEZ units/developers, casual taxpayers, cancelled registrations.
2. Types of Declarations
- Annexure VII – Opt-In Declaration for Registered Persons.
- Annexure VIII – Opt-In Declaration for New Registration Applicants.
- (Annexure IX – Opt-Out Declaration will be introduced separately.)
3. Timelines
- Annexure VII (Existing Taxpayers):
- Filing window: 1st January to 31st March of the preceding financial year.
- For FY 2026–27: 01.01.2026 to 31.03.2026.
- Annexure VIII (New Applicants):
- Must be filed within 15 days of ARN generation.
- Allowed even before GSTIN allotment, provided application is not rejected.
- After 15 days, filing only possible during Annexure VII window.
4. Filing Procedure on GST Portal
- Log in to GST Portal.
- Navigate: Services → Registration → Declaration for Specified Premises.
- Select option:
- Opt-In Declaration for Specified Premises, or
- Download Annexure Filed.
- Select eligible premises.
- Fill declaration.
- Submit using EVC.
- ARN generated on successful submission.
5. Key Instructions
- Maximum of 10 premises per declaration.
- Separate PDFs with reference numbers generated for each premise.
- Additional declarations may be filed for remaining premises.
- Suspended taxpayers may file; cancelled taxpayers cannot.
- Opt-in continues for subsequent years unless opt-out filed.
6. Downloading Filed Declarations
- Navigate: Services → Registration → Declaration for Specified Premises → Download.
- Each declared premise has a unique reference number.
7. Intimation
- Email and SMS confirmation sent to authorised signatories after successful filing.
Important Notes
- For FY 2025–26, declarations were filed manually.
- For FY 2026–27, taxpayers must re-file electronically between 01.01.2026 and 31.03.2026.
- First-time declaration of specified premises must also be filed during this window.
Conclusion
The electronic facility simplifies compliance for hotel accommodation service providers. Taxpayers and Chartered Accountants must ensure timely filing within the prescribed window. Proper record‑keeping of ARN and reference numbers is essential.
Action required: File Annexure VII electronically between 1st January 2026 and 31st March 2026 for FY 2026–27.