GST rate for hotels
GST rate for hotels for online bookings in India varies depending on the room tariff charged by the hotel. The applicable Goods and service tax rate is as follows:
Goods and service tax rate for Hotels, For room tariffs of up to Rs. 1,000 per day, there is no GST applicable.
For room tariffs between Rs. 1,001 and Rs. 2,499 per day, the applicable GST rate is 12%.
For room tariffs of Rs. 2,500 per day and above, the applicable GST rate is 18%.
Please note that these rates are subject to change as per the updates provided by the GST Council. It is always advisable to check with the hotel or a tax consultant for the latest rates applicable to your specific booking.
FAQs:
- What is the GST rate for hotel bookings in India?
The GST rate for hotel bookings varies based on the tariff; it is 12% for hotels with a room rate between ₹1,000 and ₹7,500 per night. - Is there a GST exemption for budget hotels?
Yes, hotels charging less than ₹1,000 per night are exempt from GST. - What is the GST rate for luxury hotels?
For hotels with room rates above ₹7,500 per night, the GST rate is 18%. - Are there different GST rates for different types of accommodations?
Yes, GST rates may differ based on the classification of hotels and their room rates. - How is GST calculated on online hotel bookings?
GST is calculated on the total amount charged for the hotel room, including any applicable service charges. - Does GST apply to online travel agents (OTAs) as well?
Yes, GST applies to hotel bookings made through online travel agents, similar to direct bookings. - Are there any additional charges besides GST on hotel bookings?
Yes, hotels may charge additional fees such as service charges or other surcharges, which can also be subject to GST. - Can GST on hotel bookings be claimed as an input tax credit?
Yes, businesses can claim GST on hotel bookings as input tax credit if the bookings are for business purposes. - Do foreign tourists pay GST on hotel bookings?
Yes, foreign tourists are also subject to the same GST rates on hotel bookings in India. - How does GST impact the overall cost of hotel stays?
GST increases the overall cost of hotel stays, which travelers should consider when budgeting for their accommodations.
