Rakshith Madhusudhan
We all know that GST rates for restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging, is 5%. However, if you run a restaurant in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging the GST rates would either be 5% or 18% depending on facts and circumstances mentioned in the subsequent paras.
For better understanding, first let’s quickly go through the GST rates applicable for hotel rooms.
Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having value of supply i.e. realised amount.
| Realised amount per room/person per night | GST Rates |
| Less than Rs.1,000 | 0% |
| Rs.1,000 – Rs.2,499 | 12% |
| Rs.2,500 – Rs.7,499 | 18% |
| Rs.7,500 and above | 28% |
(as mentioned under SAC 9963)
NOTE : GST on hotel rooms depends upon realised amount and not on declared tariff.
“Declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.
Now that we are aware of the slab rates of hotel room, let’s discuss on the GST rates for Restaurants inside the hotel, which depends upon declared room tariff and not on realised amount.
If the Declared room tariff is:
- 7,500 and above – GST @ 18%
- Otherwise – GST @ 5%
Hotel restaurant’s GST tax rate also affects whether or not you can claim the Input Tax Credit. If you fall into the 18% bracket, you are allowed to use the Input tax credit for all of the goods you purchase to use in your restaurant. If your hotel restaurant falls into the 5% bracket, you cannot claim Input Tax Credit.
Check out the below illustration for better understanding.
Problem:
Mr. X, books a room in a hotel for 1 nights. The declared tariff of the room is Rs.7,500. However, upon mutual consent Mr. X agreed to pay only Rs.7,000
Now,
1) What is the GST on Hotel room?
2) What is the GST on Restaurant bill inside the Hotel?
Analysis:
1) Since the GST on hotel room depends on the amount received i.e. Rs.7,000, this falls under 18% slab rate. Hence total amount payable including GST by Mr. X is Rs.8260 ( 7000 + 1260 ).
2) GST on restaurant bill inside the hotel depends on the declared tariff. Even though the amount agreed by Mr. X is Rs.7,000, the declared tariff of the room per night is Rs.7,500 and accordingly the restaurant bill attracts 18% GST.
please change the article as rate has been changed.
Sir When Calculating GST on Hotel Rooms Charges, is it including Additional Expenses like Swimming pool charges, spa massage charges, Cab rental Charges etc. Kindly confirm me.
We booked 3 rooms in Hotel @ 7000. Out of 3, 1 room was availed and balance 2 rooms became no show for which they charged 7000 as retention charges. But they charged GST @12% on availment of room and 18% on retention charges. Please clarify
Whether inputtax can be claimed for room tariff charged Rs 2200+ 12 %gst Service Provider & receiver are in same state
I want to know whether GST is calculated on the published rate for a room or actual rate charged from customers? Please reply.
Whether gst registration is compulsory when turnover exceeds 20lakhs for a lodge even the room tariff is less than 1000/-perday.whether guest charges are added in arriving room rent.
room tr is 1250 discount is 300 net amt is 950
i want to gst or not if yes then witch amt to pay
Hello Sir,
If A company is from Maharashtra & it’s Team members stays in hotel at Bangalore or hired room for a day or two for official meetings , Which tax should be charged on such invoice ? CGST + SGST or IGST ? Place of supply is same state but invoice to is maharashtra
If a room per day is Rs900. and advance reservation charges is Rs50% of normal fare, charge is Rs.450 additional. Whether GST is applicable or not
my boss stayed in England for a company conference and the bill comes to 18000 Euros. bill contains VAT. Can we claim input on through this bill
I booked a room on Sept 2019 for our stay in October 2019. The online booking portal charged us on previous tax rates only, they refused to return the difference from 18% to 12%, saying that since the booking was made in September. I am eligible to claim the difference amount back?
will it affect the hostel charges also? i paid 1,40,000 for the year 2019-20 so will it make any difference
tell me gst of day picnis for resorts
I recently booked a room in a hotel with check in on 29/08/2019 and check out on 31/08/2019 but due to some confusion we arrived at the hotel on 28/08/2019
Now we requested the hotel to let us check in for 1 day and charge extra for that night but they insisted we cancel the entire booking and on which one night will be chargeable as cancellation fees
Now i want to to know whether GST is applicable on the cancelled booking since we stayed on 29/08/2019 and have also paid GST for that day
Dear Sir,
We Would appreciate if you can explain how do we calculate GST if hotel room is booked for more than 1day.
For Example
Pax name XYZ booked hotel for 3 days @ 2600/- + % GST.
What will be calculations?
Whether 18% GST charge on 2600/- = 468 INR as per slab rate OR
28% on (2600 x 3 Days) = 7800 x 28% GST= 2184/-
Please Clarify
IF WE ARE TRAVEL AGENT OT HOTEL PURCHASE AT 28 % AND SALE ON 5% CAN WE TAKE INPUT
I want to know that if hotel room’s tariff per day is Rs.999=00 then there is no GST applicable but if that guest continue to stay for 10 days and the bill amount becomes Rs.9,990=00 will there be any GST applicable ?
Room tariff agreed with a guest 7000. He pays 18% GST. After check in to the hotel, the hotel up sells him to a different category of room with addition pay of 2000. Now the total tariff for the day is 9000. Does he pay 28% on the whole of 9000 ? or he pays 18% on 2000 also.Appreciate if this can be clarified.
Thanks
Room tariff of the hotel is 2400,guest asks for additional bed and it charges 500,then what will be the GST rate applied this
12 or 18%
Mr dhruv- ur issue answer lies in section 12 or 13 of IGST act. I believe its location of immovable property. Hence, hotel to charge. CGST AND SGST Only
if guest from Gujarat and hotel is located inb Maharashtra than which GST is Applicable in this situation ????
.IS GST SHOW SEPARATE IN BILL FOR HOTEL CHARGING GST @ 5% ? FOR PROVIDING ACCOMODATION AND FOODING SERVICE
Please explain the answere of Mr Yash
Great explanation. Thank you for sharing.
thanku. i want to know tax rate where hotel provide room on rent, food (indor catering), and pandal service. but will tax liability. itc available or not