GST Rate for Hotel Room - Updated 2026 Slab & HSN Details

Understanding GST Rates for Hotel Rooms in India

In India, the Goods and Services Tax (GST) has been a significant reform in the taxation system, affecting various industries, including hospitality. For hotel rooms, the GST rate is a crucial aspect to consider, both for hoteliers and guests. As of the effective date of rate implementation, the GST percentage slab for hotel rooms is 12% for rooms with a tariff between ₹1,001 and ₹7,500 per night, and 18% for rooms with a tariff above ₹7,500 per night.

The HSN/SAC code for hotel rooms is 9963, which falls under the services sector. It's essential to note that these rates and codes are subject to change, and it's crucial to stay updated with the latest information to ensure compliance.

Rate and HSN Code Snippet

HSN/SAC Code	Service Description	GST Rate (%)	Effective Date
9963	Accommodation in hotels, inn, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes	12% / 18%	01/07/2017

Detailed Tax Breakdown for Hotel Rooms

The tax breakdown for hotel rooms in India is as follows:

For rooms with a tariff between ₹1,001 and ₹7,500 per night, the GST rate is 12%. This means that if the room tariff is ₹5,000 per night, the GST amount would be ₹600 (12% of ₹5,000), and the total amount payable would be ₹5,600.

For rooms with a tariff above ₹7,500 per night, the GST rate is 18%. This means that if the room tariff is ₹10,000 per night, the GST amount would be ₹1,800 (18% of ₹10,000), and the total amount payable would be ₹11,800.

Calculator Widget

To calculate the GST amount for a specific room tariff, you can use the following calculator widget:

12% (₹1,001 - ₹7,500) 18% (above ₹7,500) Calculate GST

function calculateGst() { var roomTariff = document.getElementById("roomTariff").value; var gstRate = document.getElementById("gstRate").value; var gstAmount = (roomTariff * gstRate) / 100; document.getElementById("gstAmount").innerHTML = "GST Amount: ₹" + gstAmount.toFixed(2); }

Comparison with Pre-GST Tax Regime

Prior to the implementation of GST, the tax regime for hotel rooms in India was complex, with multiple taxes levied by the central and state governments. The pre-GST tax regime included taxes such as service tax, luxury tax, and value-added tax (VAT). The effective tax rate for hotel rooms varied from state to state, ranging from 10% to 20%.

The introduction of GST has simplified the tax structure for hotel rooms, with a single tax rate applicable across the country. However, the GST rates for hotel rooms are higher than the pre-GST tax rates in some states, which has led to an increase in room tariffs.

Pre-GST Tax Rates for Hotel Rooms

State	Service Tax (%)	Luxury Tax (%)	VAT (%)	Effective Tax Rate (%)
Maharashtra	14	10	5	19.14
Delhi	14	10	5	19.14
Kerala	14	10	5	19.14

Frequently Asked Questions and Compliance Tips

Here are some frequently asked questions regarding input tax credit and compliance for hotel rooms:

• Q: Can hoteliers claim input tax credit on GST paid on goods and services used for providing accommodation services?
• A: Yes, hoteliers can claim input tax credit on GST paid on goods and services used for providing accommodation services, subject to certain conditions.
• Q: What are the compliance requirements for hoteliers under GST?
• A: Hoteliers are required to obtain GST registration, file GST returns, and pay GST on time to avoid penalties and interest.

Compliance Tips

To avoid common billing mistakes associated with hotel rooms, follow these compliance tips:

1. Ensure that the GST rate is correctly applied to the room tariff, based on the applicable GST rate slab.
2. Provide a clear breakdown of the GST amount in the invoice or bill, to avoid any confusion or disputes with guests.
3. Maintain accurate and detailed records of GST payments and input tax credits, to ensure compliance with GST regulations.

By following these compliance tips and staying updated with the latest GST regulations, hoteliers can ensure smooth and efficient operations, while also avoiding any potential penalties or fines.