Hotel room tariff of up to Rs 7,500 will attract 18% GST

Goods and services tax

Updates / Press releases :

Dated : 18^th July, 2017

Press Release :

Ministry of Finance

Hotels with room tariff less than Rs. 7500 to attract GST

Government clarifies that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18% ; 

Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST. 

Reports have been received expressing doubts whether 5-star Hotels are liable to pay GST @ 28% irrespective of the declared tariff of a unit of accommodation. 

In this context, it is hereby clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%. Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST. 

press release can be access at : http://www.cbec.gov.in/resources//htdocs-cbec/press-release/cbec-press-release-hotel-accomodation.pdf and http://pib.nic.in/newsite/erelease.aspx  issued by Ministry of finance dated 18^th July, 2017.