Just like other sectors in India, the hospitality industry is liable to pay goods and services taxes (GST). GST gives you the benefits of standardized and uniform tax rates across states and easy and better utilization of input tax credit.
This in turn improves the revenue for the government, and unifies hotel and restaurant taxes throughout the country.
These are the current GST rate slabs for rooms in 2023
GST for hotel rooms
|Room tariff per night||GST Rate|
|Less than 1,000/-||0|
|1,001/- to 7,500/-||12%|
|More than 7,500/-||18%|
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GST for restaurant food
|Type of restaurant||GST Rate|
|Standalone restaurants with takeaway||5%|
|Restaurant within hotels (room tariff is less than 7,500/-)||5%|
|Restaurant within hotels (room tariff is more than or equal to 7,500/-)||18%|