Room GST: 5% without input tax credit
| Room charges (2 × ₹6,500) | ₹13,000 |
| CGST 2.5% + SGST 2.5% on rooms | ₹650 |
| Food and beverage | ₹1,200 |
| GST on food at 5% | ₹60 |
| Bill total | ₹14,910 |
Up to ₹7,500 a night (₹7,500 itself included) the room is taxed at 5%, and you cannot claim input tax credit. The test is per room, per night: a room sold at ₹7,200 one night and ₹8,000 the next falls in different bands.
How the rate is decided
- Up to ₹7,500 a night: 5% GST, without input tax credit.
- Above ₹7,500 a night: 18% GST, with input tax credit.
- The test is the value you charge for that room for that night, not the rack rate. Each room and each night is tested on its own.
- The old 12% slab for rooms ended on 22 September 2025.
- Restaurants: 5% without input tax credit, except a restaurant in "specified premises" (a hotel where any room is charged above ₹7,500 a night), which bills at 18% with input tax credit.
The full explanation, with sources: GST on hotel rooms and restaurants.
This tool gives general information, not tax or legal advice. Check your own case with your CA or the official source.