Banquet Halls Cost for Wedding: As soon as anyone hears the word ‘wedding’, a clarinet starts ringing in the mind, but once the wedding card is printed, the game of expenses starts again. There are many types of expenses in a marriage. Clothes, jewellery, decoration, DJ, photographer, food and drinks, gifts for the girls and boys… and the biggest expense? Actually, the biggest expense is booking the hall where you will get married. Just booking a banquet or resort for a wedding evening can cost you Rs 1-2 lakh. Moreover, during the wedding season, the hall owners tell you such rates as if they are giving you the entire palace on rent.
Now, if you are also troubled by the thought that you have to get married, but how to reduce the expenses of the hall, then wait… today we are going to tell you some easy and useful tricks which can save your money.
There will be 13% saving on hall booking
Instagram finance influencer Binge Wealth states that you can save up to 13% directly on banquet hall bookings. There is a way for this – book both the hall and food (Catering) from the same vendor. If purchased from different vendors, 18% GST will be charged on hall and 5% GST on catering. But if purchased from one place, the entire supply is considered as “composite supply” and only 5% GST is applicable on both. That means only 5% GST is levied on hall instead of 18%. This directly results in savings of 13%. This trick will save thousands of rupees by reducing your bill worth lakhs.
understand through calculations
Suppose the base rent of your banquet hall is Rs 5 lakh (without GST) and if you choose different vendors,
GST on Hall = Rs 5,00,000 × 18% (GST) = Rs 90,000
If we consider catering separately then 5% (GST) on Rs 2 lakh = Rs 10,000.
In this case, you will have to pay total GST of Rs 1,00,000.
Now if you have booked hall and catering from the same vendor,
Total base amount (5 lakh + 2 lakh) = Rs 7 lakh
Only 5% GST will be applicable on composite supply = Rs 7,00,000 × 5%(GST) = Rs 35,000
In this case, savings = Rs 1,00,000 – 35,000 = Rs 65,000.
That means, on a hall worth Rs 5 lakh, there will be a saving of about 13% (Rs 55,000) and on a hall worth Rs 10 lakh, this saving will be more than Rs 1 lakh.
According to Siddharth Maurya, Founder and Managing Director, Vibhavangal Anukkara Private Limited, The biggest savings in the wedding budget happen where people pay least attention – the tax structure. Higher GST is charged if banquet hall and catering are booked separately. But if both the services are availed from the same vendor then it is considered as ‘composite supply’ and only 5% GST is applicable on the entire package. This directly reduces costs by 10–13%. In a normal wedding, this trick can save thousands to lakhs in some cases, that too without any extra effort.
If you are dreaming of a grand wedding but the budget is low, then you can reduce the cost of food plates at the time of hall booking. Apart from this, you should keep only those food items which most people eat. This will save you more money because most of the guests at the wedding eat the same items which they have already eaten before. Apart from this, if you keep less items then your money will also be saved because the more items you have, the more the cost will increase. You can also make some changes regarding the decoration of the hall so that your budget is not spent too much on decoration.
