GST on Hotel Accommodation 2026 — 12% or 18%? Rate Slab Guide
Hotel and accommodation GST rates in India are based on the room tariff (declared or actual price, whichever is higher). Budget hotels pay 12% GST, luxury hotels pay 18%. Restaurants inside hotels also have different rates depending on room tariff. Banquet halls and event spaces attract 18% GST.
By Arjun Sharma· GST & Tax Compliance Specialist···Reviewed for GST accuracy
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Quick Answer
Hotel GST rates in India depend on the declared room tariff: rooms priced below ₹1,000 per night are exempt (0%). Rooms from ₹1,001 to ₹7,500 attract 12% GST (SAC 996311). Rooms above ₹7,500 attract 18% GST. Restaurants inside hotels with room tariff above ₹7,500 charge 18% GST (with ITC); restaurants in budget hotels charge 5% GST (no ITC). Banquet halls and conference rooms attract 18% GST regardless of room tariff.
Hotel Room GST Rates by Tariff
Room Tariff Per Night
GST Rate
Notes
Up to ₹1,000
0%
Exempt
₹1,001 to ₹7,500
12%
GST applies on full tariff
Above ₹7,500
18%
GST applies on full tariff
Restaurant in hotel (tariff ≤ ₹7,500)
5% (no ITC)
Standard restaurant rate
Restaurant in hotel (tariff > ₹7,500)
18% (with ITC)
Luxury hotel restaurant
Banquet halls / event venues
18%
SAC 996331
Hotel Invoicing Rules Under GST
Hotels must issue a tax invoice for all guests (B2B or B2C). For corporate clients, include the company's GSTIN to enable ITC claim. The invoice must separate room charges, restaurant charges, and other services (laundry, minibar, spa) — each may have different GST rates. Hotels must also comply with SAC 996311 for accommodation services. ITC on hotel accommodation is available to businesses when the stay is for business purposes — employees traveling for work can have their employer claim ITC on hotel GST.
Example
A Bengaluru hotel charges ₹8,500 per night for a corporate guest (3 nights). Tariff > ₹7,500, so 18% GST applies. Room charges: ₹25,500. GST at 18%: CGST ₹2,295 + SGST ₹2,295 = ₹4,590. Restaurant bill ₹3,000 at 18% GST: ₹540. Total invoice: ₹33,630. Corporate employer claims ITC on full GST if visit was for business.
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Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.
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