Case of Orsino Hotels & Resorts LLP, AAR West Bengal Ruling Dated 22nd August 2025. AAR ruled that under the American Plan (AP) or Continental Plan (CP), the food component will have no separate treatment for the purpose of taxation, since it is clearly a case of “composite supply”. If the total value of the combined supply (accommodation and food) exceeds Rupees Seven thousand five hundred it will be taxable under serial no. 7(vi) and the tax rate will be 9% CGST + 9% SGST.
— In the case the separate restaurant services provided in the hotel premises to walk-in guests will be taxable under serial no. 7 (ii), since the hotel premises is not a ‘specified premises’ for financial year 2025-26 as per data furnished by the applicant. In that case the tax rate will be 2.5% CGST + 2.5% SGST subject to the condition prescribed in column 5 of the table in the said notification for financial year 2025-26.