GST on Hotel Rooms in India (2026): Rates, Examples and Common Mistakes
19 October 2026 · 7 min read · StayDesk team
GST on hotel rooms changed on 22 September 2025, when the 56th GST Council removed the 12% slab. Many resort owners — and some billing software — still charge the old rates. This guide covers what applies today, with worked examples you can check your own bills against.
Current GST rates on hotel rooms
| Room rate per night | GST | Input tax credit (ITC) |
|---|---|---|
| Up to ₹7,500 | 5% | Not available |
| Above ₹7,500 | 18% | Available |
The rate depends on the value charged for one room for one night. It is not decided by your bill total, the number of nights or how many rooms a guest books.
What about rooms under ₹1,000?
Rooms under ₹1,000 a night used to be exempt. That exemption was withdrawn on 18 July 2022, so a registered property must charge GST on these rooms too — today at 5%. If your software still shows 0% for budget rooms, it is out of date.
Published tariff or the price the guest actually paid?
The slab follows the amount actually charged. If your rack rate is ₹8,500 but you give a discount and charge ₹7,000 a night, the 5% slab applies to that booking. Keep the invoice consistent with what the guest paid.
Worked examples
| Booking | Room charge | GST | CGST + SGST | Total |
|---|---|---|---|---|
| 1 room × 2 nights at ₹3,000 | ₹6,000 | 5% = ₹300 | ₹150 + ₹150 | ₹6,300 |
| 1 room × 1 night at ₹900 | ₹900 | 5% = ₹45 | ₹22.50 + ₹22.50 | ₹945 |
| 2 rooms × 3 nights at ₹7,500 | ₹45,000 | 5% = ₹2,250 | ₹1,125 + ₹1,125 | ₹47,250 |
| 1 villa × 2 nights at ₹9,000 | ₹18,000 | 18% = ₹3,240 | ₹1,620 + ₹1,620 | ₹21,240 |
CGST and SGST — even for guests from other states
For hotel accommodation, the place of supply is where the property is. So a guest from Bengaluru staying at your resort in Goa is still billed CGST + SGST (half each), not IGST. Your invoice should show the split.
Food, restaurant and other charges
- Restaurant service inside a hotel is generally 5% without ITC.
- If the hotel is “specified premises” — broadly, any room was charged above ₹7,500 a night in the previous financial year — restaurant service there is 18% with ITC.
- Store items, laundry, activities and transfers each follow their own rates. Bill them as separate lines on the folio instead of folding them into the room rate.
Do you need GST registration at all?
A service business must register once aggregate turnover crosses ₹20 lakh a year (₹10 lakh in special-category states). Below that, many small homestays and guest houses are not registered and do not charge GST. If you are not registered, your bills should not show GST at all.
Bookings that come through OTAs work differently for unregistered properties: the OTA (the e-commerce operator) may be liable to pay the GST on rooms sold through it. Ask your accountant how this applies to your property and your OTAs.
Mistakes we see most often
- Still charging 12% on mid-range rooms. That slab no longer exists.
- Charging 0% on rooms under ₹1,000 while GST-registered.
- Applying 18% to the whole bill because the total crossed ₹7,500. The slab is per room per night.
- Showing IGST for out-of-state guests. Accommodation is billed as CGST + SGST.
- Charging GST while unregistered. If you are below the threshold and not registered, don't add GST.
- Mixing food into the room rate. This makes the room look more expensive and can push it into the 18% slab.
Get the GST right automatically
StayDesk applies the right slab to each room on every invoice. It splits CGST and SGST, keeps food and extras as separate lines, and lets you switch GST off completely if you're not registered.
Check any rate in seconds with the free calculator, or let StayDesk handle every invoice.
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