Marriage halls and banquet halls are a high-revenue service sector, especially during the wedding season. However, GST on hall rent, room accommodation, and catering is one of the most misunderstood areas.
Common mistakes I see in practice:
- Treating the entire bill as one service
- Applying a single GST rate blindly
- Wrong classification of composite vs mixed supply
- Availing ineligible ITC and inviting notices
This handout explains GST on Marriage Hall / Banquet Hall with Rooms and Catering in simple but legally accurate language, so owners, accountants, and taxpayers get it right.
Nature of Service (As per GST Law)
Under GST law, the following services are involved:
| Component | Nature |
| Marriage / Banquet Hall Rent | Supply of Service |
| Room Accommodation | Supply of Service |
| Catering / Food Supply | Supply of Service |
Composite or Mixed Supply?
- Hall + Catering (single price, naturally bundled) → Composite Supply
- Hall rent + rooms + catering charged separately → Independent supplies
- Optional services bundled artificially → Mixed Supply (highest rate applies)
👉 Key test: Whether services are naturally bundled in the ordinary course of business.
Relevant SAC Codes
| Activity / Service | SAC Code | Remarks |
| Marriage / Banquet Hall Rent | 9963 | Renting of immovable property |
| Room Accommodation (Hotel / Guest House) | 996311 | Depends on room tariff |
| Outdoor / Event Catering | 996334 | Catering services |
| Restaurant-type food supply | 996331 | If food served like restaurant |
GST Rates Applicable
A. Marriage / Banquet Hall Rent
| Particulars | GST Rate |
| Renting of marriage/banquet hall | 18% |
Notification: No. 11/2017 – Central Tax (Rate), Heading 9963
✔ ITC allowed
B. Room Accommodation (Tariff-based)
| Declared Room Tariff per Day | GST Rate |
| Upto ₹7500 | 5% without ITC |
| above ₹7,500 | 18% with ITC |
📌 Declared tariff = tariff published on website or reception counter
📌 Seasonal discounts do not change slab
C. Catering Services (Most Confusing Part)
| Type of Catering | GST Rate | ITC |
| Catering in marriage / banquet function | 5% | ❌ Not allowed |
| Caterer operates from a hotel (where room tariff exceeds ₹7,500) | 18% | ✔ Allowed |
| Pure outdoor catering (non-specified premises) | 5% | ❌ |
GST Exemptions (If Any)
| Service | Exemption |
| Room accommodation up to ₹1,000 per day | Religious and Charitable Use: Renting is exempt from GST unless it exceeds ₹1,000 per night for rooms. |
| Renting for religious ceremonies (specific cases) | Conditional |
Notification: 12/2017 – Central Tax (Rate)
⚠ Marriage hall for commercial weddings is NOT exempt
Input Tax Credit (ITC) Rules
Eligible ITC
✔ Electrical fittings
✔ Furniture, AC, lighting
✔ Security, housekeeping services
✔ Repairs & maintenance
✔ Advertising expenses
Ineligible ITC
❌ Food & beverages (when taxed at 5%)
❌ Staff catering
❌ Personal consumption
Legal Restriction
Section 17(5) – blocked credit for food services where output is taxed at 5%.
Place of Supply Rules
| Scenario | Place of Supply |
| Hall located in same State | CGST + SGST |
| Hall in another State | IGST |
| Foreign client, function in India | Still taxable in India |
📌 Location of immovable property decides tax.
Registration Requirements
| Particulars | Limit |
| Aggregate turnover (services) | ₹20 lakh (₹10 lakh in special states) |
Mandatory Registration Even Below Limit
✔ Interstate supply
✔ E-commerce platforms
✔ Voluntary registration
Compliance Requirements
- GSTR-1 – Outward supplies
- GSTR-3B – Monthly tax payment
- GSTR-9 – Annual return
- E-Invoice (if applicable)
- Proper rate-wise bifurcation in invoice
Latest GST Updates (Practical Position – 2026)
- GST rate 5% on catering continues with no ITC
- Strict scrutiny on composite supply misclassification
- Notices issued for wrongly claiming ITC on food expenses
Practical Issues & Common Mistakes
❌ Charging 5% on entire wedding bill
❌ Not separating room rent and hall charges
❌ Claiming ITC on catering input
❌ Wrong SAC codes
❌ Ignoring declared tariff concept
👉 These errors often lead to GST audit objections & DRC-01 notices.
Case Studies & Examples
Example 1 – Hall + Catering (Composite)
- Single package: ₹5,00,000
- If catering is the main service – 5% GST (without ITC)
- If banquet hall is the main service – 18% GST (with ITC eligibility)
Example 2 – Hall Rent + Catering (Separate Billing)
- Hall Rent: ₹2,00,000 → 18%
- Catering: ₹3,00,000 → 5%
✔ ITC allowed only for hall portion
Example 3 – Room Rent + Hall + Catering
- Room tariff ₹6,000 → 5%
- Hall Rent → 18%
- Catering → 5%
Correct segregation avoids future litigation.
Summary Table (Quick Reference)
| Topic | Summary |
| Hall Rent | 18% |
| Catering | 5% (No ITC) |
| Room Rent | 5% / 18% |
| Composite Supply | Yes, in packages |
| ITC | Partially allowed |
| RCM | Limited |
| Returns | GSTR-1, 3B, 9 |
GST on marriage halls, banquet halls, room rent, and catering is not complicated, but wrong structuring makes it risky.
If you are:
- Bundling services blindly
- Claiming ITC aggressively
- Using wrong GST rates
👉 You are inviting future notices.
Correct classification, proper invoicing, and ITC discipline are the only safe approach.
For complex billing models or departmental scrutiny, professional advice is not optional—it is necessary.
