GST on weddings is crucial to know because weddings involve lots of goods as well as services that are subjected to GST. Therefore, one should know about the implication of GST on weddings in India.
GST on Weddings: Major Goods & Services
Weddings involve various goods and services such as clothes of the bride/groom/relatives, jewellery, food, decoration, venue, makeup services and many more goods and services. Each of these major goods and services attracts GST at the rate set by the Government.
GST Rates on Wedding Goods & Services
The GST rates on the wedding’s major goods and services are as follows:
| Goods or Services for Weddings | GST Rates |
|---|---|
| Hiring of Venue | 5% or 18% depending on the nature of the venue. Whether it includes catering or not |
| Outdoor Catering (Food and Beverages excluding Alcohol) |
5%, (if not in a hotel or the tariff of room is less than Rs. 7500/day) 18% (if in a hotel with a room tariff of more than Rs. 7500 per day) |
| Air Travel |
5% (economy) 12% (others) |
| Accomodation |
5%, (if tariff of room is less than Rs. 7500/day) 18% (if room tariff of more than Rs. 7500 per day) |
| Wedding Apparel |
5% (if below Rs. 1000) 12% (if above Rs. 1000) |
| Wedding Planning Services | 18% |
| Photography & Videography | 18% |
| Hairdresser and Barber Services | 18% |
| Face and Beauty Treatment Services | 18% |
| Makeup services | 18% |
| Flower/Decoration of Venue | 18% |
| Musical Events | 18% |
| Jewellery | 3% |
Things To Keep In Mind wrt GST on Weddings
If you rent-out the venue on a standalone basis without the food catering services, then the GST rate will be 18%. Having said this, it will be irrespective of the fact whether the venue has hotel or not.
On the other hand, if you hire the venue with catering services, then it will attract GST @5% (if it is a hotel with rooms of a tariff of less than Rs. 7500/day). However, if the room’s tariff is more than Rs. 7500/day, then it will attract GST @18%.
If the venue is on rent on a standalone basis without the catering services, irrespective of its nature (with or without a hotel room), then GST rate is 18%. However, if the hiring of venue is with catering services then it attracts GST at 5%. This will apply to venue without rooms or where the room rate does not exceed Rs 7500 per day. However, hiring of venue with catering services having a room rate exceeding Rs 7,500 per day will attract GST at 18%.
For instance, Mr. Bajaj hires a venue without food for Rs. 1 lac for her daughter’s wedding. In this case, he will pay GST @18% i.e., Rs. 18,000 for the venue. In addition to this, suppose he hires a food vendor for another Rs. 1 lacs, then he will have to pay GST @5% i.e., Rs. 5,000. Therefore, in total he will have to pay Rs. 23,000 GST.
On the other hand, Mr. Kapoor engages the same vendor for food as well as venue, then the GST rate applicable will be 5% on the total of Rs. 2 lacs i.e., Rs. 10,000. By doing so, Mr Kapoor is able to save Rs. 13000 in GST.
Conversely, in some cases it is also advisable to not to take the services from the same vendor due to the nature of goods and services. It may be more cost-effective to engage a separate vendor for venue cum catering, and a separate one for décor and photography. If one vendor is only to be engaged, it is advisable to enter into separate contracts or at least segregate the billing and have a separate bill for the venue along with catering and a separate one for the décor.
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