Hospitality GST is driven by one number: the room tariff. It decides your rate slab, and it interacts with the restaurant, banquet and other services a hotel provides — so a single property can be handling several GST treatments at once. (Slabs are revised from time to time, so we always apply the current position.)
Room tariff sets the rate
Accommodation GST is banded by the declared room tariff — lower-tariff rooms attract a lower rate and higher-tariff rooms a higher rate, with the exact thresholds and percentages set by the GST Council and revised periodically. Because the slabs change, we apply the current bands to your actual tariffs rather than relying on outdated figures, and we make sure your billing reflects the right rate per room category.
The restaurant, banquet and other services
A hotel restaurant has its own treatment — commonly 5%, but 18% where it sits in a higher-tariff property. Banquets, event spaces, laundry, spa and other services each carry their own rate. A property therefore juggles multiple rates, and clean segregation in billing and returns is what keeps it compliant and your input credit correct.
Input credit and compliance
- Input credit availability depends on the rate you charge (e.g. 5% restaurant service carries no ITC)
- Online travel aggregators (OTAs) add e-commerce reporting considerations
- Multiple rate categories must be segregated cleanly in GSTR-1
- Registration is required once taxable turnover crosses the threshold — quickly, for most hotels