GST For Hotel

What is GST For Hotel?

As the final cost to end user decreases, we can expect the industry to attract more overseas tourists than before. This would ideally result in improved revenues for the government, and there are many pros to this new tax regime which could help the industry’s growth in the long run. For instance, complementary food (like breakfast) was taxed separately under VAT, but now it will be taxed under GST as a bundled service.

GST Rate for Hotels

The GST rate applicable for hotels, inns, guest houses, clubs, campsites or other places for temporary stay would depend on the type of facility, star rating and room rent per day charged.

Hotels Rooms with Tariff of Less than Rs.2500 per Day

12% of GST shall apply while renting hotel rooms, inns or guest houses. In addition, the same GST rate shall also apply to clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day.

Hotels Rooms with Tariff of Less than Rs.5000 per Day

18% of GST shall apply while renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where the room tariff ranges from Rs.2500 and above but less than Rs.5000 per room, per day.

5 Star Hotels or Hotels Rooms with Tariff of more than Rs.5000 per Day

28% GST rate applies to accommodation in hotels including 5 stars and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent ranges from Rs.5000 and above per night per room.