Last updated on February 25th, 2023 at 10:01 pm
GST on Hotel & Tourism Industry
Budget Holidays will become expensive by 12% from 18th July 2022. Supplying accommodation in hotels is considered a supply of service and it attracts GST @ 12% or 18% (SAC Code – 9963).
In 2019, Government slashed the GST rates for the highest category of room rents in the hotel industry which gave the tourism/hotelier industry a breathing space. Whereas in 2022, Government has brought the lowest category of room rents under the tax ambit by directly bringing the exempt category to pay a hefty 12% GST.
What is covered in the accommodation in hotels?
Accommodation in hotels will cover hotels, inns, guest houses, clubs, campsites, or other commercial places which are meant for residential or lodging purposes where the tariff for a unit of accommodation is declared per unit per day.
When GST shall not be levied by Hotels?
W.E.F. 18th July 2022, GST shall not be levied for providing accommodation services only in case the hotel is not required to register as the aggregate turnover does not exceed the threshold limit of Rs 20 lakhs.
GST Rates on accommodation in Hotels
18th July 2022 and onwards
The decision to withdraw the exemption provided for room rents up to Rs 1000 per day was taken at the 47th GST Council Meeting.
|
Room Rent |
Rate |
| Rs 0 to Rs 7500 per day |
12% with ITC |
|
Rs 7501 and more |
18% with ITC |
The exemption was withdrawn vide a CGST(Rate) Notification 04/2022 dated 13th July 2022.
GST Rate notified vide a CGST(Rate) Notification 03/2022 dated 13th July 2022.
1st October 2019 2017 to 17th July 2022
The decision to reduce the category of GST rates based on room rent slabs and rate reduction for the highest room rent slab per day was taken at the 37th GST Council Meeting.
|
Room Rent |
Rate |
| Rs 0 to Rs 1000 per day |
Exempt |
|
Rs 1001 to Rs 7500 per day |
12% with ITC |
| Rs 7501 and more |
18% with ITC |
GST rates were substituted/notified vide a CGST(Rate) Notification no. 20/2019 dated 30th September 2019.
1st July 2017 to 30th September 2019
The decision to notify the GST rates for the hotel and tourism industry was taken at the 14th GST Council Meeting.
|
Declared Tariff |
Rate |
| Rs 0 to Rs 1000 per day |
Exempt |
|
Rs 1001 to Rs 2499 per day |
12% with ITC |
| Rs 2501 to Rs 4999 per day |
18% with ITC |
|
Rs 5000 and more |
28% with ITC |
GST rates were substituted/notified vide a CGST(Rate) Notification no. 11/2017 dated 28th June 2017.
Gist of the evolution of GST on Hotels
GST on Food in Restaurants, Food in Hotels, Food by parcels, Food by Catering
|
Particulars |
GST Rate |
|
Standalone Restaurants |
5% |
| Restaurants where the room rent is up to Rs 7500 |
5% without ITC |
|
Restaurants where the room rent is Rs 7500 or above |
18% with ITC |
| Outdoor catering services |
5% without ITC |
|
Catering services where the room rent is up to Rs 7500 |
5% without ITC |
| Catering services where the room rent is Rs 7500 or above |
18% with ITC |
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Well explained
Thank you
ROOM TARIFF CP EP AP 18% APPLICABLE
The government’s levy of GST depends upon the room tariff. If room tariff CP EP AP exceeds Rs 7501 then 18% GST otherwise 12%.
Hotel plan foods GST added
Madanji, if you could elaborate on your query further? We would be happy to help.
Can you Please Provide any GST Notifications regarding Taxes to be charged on Room Supplies related to Breakfast/Lunch/Dinner. I know room tarrif gst is to be charged on food supplies to rooms, Like if we are charging GST on Rooms below 7500 as 12% then we have to charge 12% on food supplies to room. But Do we have any Specific GST Notification on this. Pl share on my email sushilsharmafca1996@gmail.com
There is no specific notification for the same. But when you supply it as a bundle supply with a room tariff rate of room tariff shall be applied i.e 12% or 18% based on the room tariff.
Hi sir
If any of room rate is Rs.7000 + Gst and if any extra bed added in room Rs.1500 + Gst So what will be the Tax structure in that scenario
The tax rate will be decided on the tariff of the room. Add-ons like extra bed charges will not change the rate from 12% to 18%.
so if the rate applicable to your room is 12% based on the room tariff extra bed will also be charged at 12%.
Hope that helps
what is the sales gst in hotels ? actually restauarant is 5% and what about in hotel.
GST rate on Hotel is
– 12% if room tariff is below Rs 7500 per night.
– 18% if room tariff is above Rs 7500 per night.
GST rate on restaurant is
– Standalone Restaurant – 5%
– Restaurant in Hotel where room tariff is below 7500 – 5%
– Restaurant in Hotel where room tariff is below 7500 and cost of food is included in room tariff – 12%
– Restaurant in Hotel where room tariff is above 7500 and cost of food is included in room tariff – 18%
– Restaurant in Hotel where room tariff is above 7500 but Hotel has taken separate GST registration for restaurant then – 5%
– Restaurant in Hotel where room tariff is above 7500 and cost of food is not inclded in room tariff and Hotel has not taken separate GST registration for restaurant then – 18%
Mere hotel ka room tariff 7000/- with tax and with food service h. can i divided it 2 parts as 3000 room tariff and 4000 food charge. yadi ha to me room pr kitna gst lga sajta hu aur food pr kitna. yadi nahi to 7000/- ke liye mera tax slab kya h.
GST rate will be 12% as the room tariff is below 7500.
If your hotel is supplying room+food as bundle supply you cant ask them to separate the bills you will be charged 12% on total.
Food at hotel where room tariff is less than Rs 7500 should be charged at 5% only.
Suppose room tariff in some room above 7500 so GST charged @ 18%. but in the same hotel some rooms @ 4000 or 5000. Those will be charged @ 12% or 18%. Will you pls advise.
Yes. 18% would be charged for rooms whose tariff is more than 7500 Rs and for rooms whose tariffs is less than 7500 Rs GST will be 12% only.