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

Understanding GST on Hotel Rooms in India

GST, or Goods and Services Tax, has been a significant factor in the Indian hospitality industry since its implementation. When it comes to hotel rooms, the tax structure can be complex, with various rates and conditions applying. In this article, we will delve into the specifics of GST on hotel rooms in India, covering the tax rates, breakdown, comparison with the pre-GST regime, and frequently asked questions.

Direct Answer: GST Rate and HSN Code for Hotel Rooms

The GST rate for hotel rooms in India varies based on the room tariff. For rooms with a tariff of up to ₹1,000 per day, the GST rate is 0%. For rooms with a tariff between ₹1,001 and ₹7,500 per day, the GST rate is 12%. For rooms with a tariff above ₹7,500 per day, the GST rate is 18%. The HSN code for hotel rooms is 9963.

Room Tariff (₹ per day)	GST Rate (%)	HSN Code
Up to 1,000	0	9963
1,001 - 7,500	12	9963
Above 7,500	18	9963

Detailed Tax Breakdown for Hotel Rooms

To understand the tax implications on hotel rooms, it's essential to break down the composition of the tax. The GST rate for hotel rooms is a combination of the central GST (CGST) and state GST (SGST). For rooms with a tariff between ₹1,001 and ₹7,500 per day, the CGST is 6%, and the SGST is 6%, totaling 12%. For rooms with a tariff above ₹7,500 per day, the CGST is 9%, and the SGST is 9%, totaling 18%.

Composition vs Regular GST Tax Breakdown

The composition scheme is an alternative method of taxation for small businesses, including hotels. Under the composition scheme, hotels with an annual turnover of up to ₹1.5 crore can pay a fixed GST rate of 1% to 5%. However, this scheme is not available for hotels with a room tariff above ₹7,500 per day.

Tax Type	GST Rate (%)	CGST (%)	SGST (%)
Regular GST	12/18	6/9	6/9
Composition Scheme	1-5	N/A	N/A

Comparison with Pre-GST Tax Regime

Before the implementation of GST, the tax structure for hotel rooms in India was complex, with multiple taxes applying, including service tax, luxury tax, and value-added tax (VAT). The pre-GST tax regime had a tax rate ranging from 15% to 20% for hotel rooms, depending on the state and the type of hotel. With the introduction of GST, the tax rate for hotel rooms has been simplified, with a uniform tax rate applying across the country.

Key Differences between Pre-GST and GST Regime

The key differences between the pre-GST and GST regime for hotel rooms are:

• Uniform tax rate: GST has introduced a uniform tax rate for hotel rooms across the country, replacing the multiple tax rates that applied under the pre-GST regime.
• Simplified tax structure: The GST regime has simplified the tax structure for hotel rooms, with a single tax rate applying, rather than multiple taxes.
• Increased tax revenue: The GST regime has increased tax revenue for the government, with a higher tax rate applying to luxury hotels.

Frequently Asked Questions regarding Input Tax Credit and Compliance

Hotel owners and operators often have questions regarding input tax credit and compliance under the GST regime. Here are some frequently asked questions and their answers:

Input Tax Credit (ITC) on Hotel Rooms

ITC is available on the GST paid on hotel rooms, provided the hotel owner or operator has a valid GST registration and has paid the GST on the room tariff. The ITC can be claimed on the GST paid on the room tariff, as well as on the GST paid on other inputs, such as food and beverages, used in the hotel.

Input	GST Rate (%)	ITC Available
Room Tariff	12/18	Yes
Food and Beverages	5/12/18	Yes

To calculate the total GST amount on a hotel room, you can use our GST calculator widget:

Calculate GST

function calculateGST() { var roomTariff = document.getElementById("room-tariff").value; var gstRate = 0; if (roomTariff <= 1000) { gstRate = 0; } else if (roomTariff <= 7500) { gstRate = 0.12; } else { gstRate = 0.18; } var gstAmount = roomTariff * gstRate; document.getElementById("gst-amount").innerHTML = "Total GST Amount: ₹" + gstAmount.toFixed(2); }

Compliance Tips for Hotel Owners and Operators

To avoid common billing mistakes and ensure compliance under the GST regime, hotel owners and operators should:

1. Maintain accurate records of room tariffs and GST payments.
2. Obtain a valid GST registration and display the GSTIN on invoices and receipts.
3. Charge the correct GST rate on room tariffs and other inputs.
4. File GST returns on time and pay the GST liability.

By following these compliance tips and understanding the GST regime for hotel rooms, hotel owners and operators can ensure smooth operations and avoid any potential penalties or fines.