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GST on hotel rooms

Unlike most services, the GST rate on a hotel room depends on the price of that room for one night.

The slab

Price of the room for one night	GST rate
Up to ₹7,500 (from 22 September 2025)	5%, without input tax credit
Above ₹7,500	18%
₹1,001 to ₹7,500 (before 22 September 2025)	12%

The accommodation is service code SAC 996311. The slab goes by the value of the supply of one unit of accommodation for one day, so two rooms on one stay can fall in different slabs. The maker suggests the rate from each room’s price per night and shows it as a hint in the rate box; type another rate on any room if your accountant says so.

The rates above are from the 56th GST Council change as reported by tax-news sources in September 2025. Rooms priced at ₹1,000 or less per night were exempt until 17 July 2022; check the current position for such rooms with your accountant before relying on a rate.

Worked example

Line	Taxable	GST	Tax
Room 101, 2 nights at ₹2,500	₹5,000	5%	₹250
Room 501, 2 nights at ₹9,000	₹18,000	18%	₹3,240

Total ₹26,490, shown as CGST + SGST within your state or as IGST for a guest from another state who gives a GSTIN with that state’s code.

Food, laundry and other charges

Charges added to the bill are separate lines with their own rate box. Food served in a restaurant is taxed under its own rules (usually 5% without input credit for a restaurant; different for restaurants inside hotels with high room prices). Write the rate your accountant gives you.

Not registered, or composition

Not registered: no GST may be charged; pick "Bill (not GST registered)".
Composition: pick "Bill of supply"; no GST is shown and the required words print.

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