The Goods and Services Tax (GST) rate applicable to hotels in India depends on the category of hotel and the state where it is located.
As per the GST Act, 2017, hotels are classified into three categories:
- Budget Hotels: These hotels provide basic amenities such as a bed, bathroom, and limited facilities. The GST rate for budget hotels is 12%.
- Mid-Range Hotels: These hotels offer moderate amenities such as a restaurant, room service, and other facilities. The GST rate for mid-range hotels is 15%.
- Luxury Hotels: These hotels provide high-end amenities such as luxury rooms, fine dining, and premium services. The GST rate for luxury hotels is 28%.
Additionally, some states in India have implemented their own tax rates on hotel bookings, which may vary from the central GST rate. For example:
- In Maharashtra, a state-specific luxury tax of 20% is applicable to luxury hotels.
- In Karnataka, a tourism tax of 1-3% is applicable to all types of hotels.
Here are some examples of hotel GST rates in different states in India:
| State | Budget Hotels (12%) | Mid-Range Hotels (15%) | Luxury Hotels (28%) |
|---|---|---|---|
| Delhi | ₹12.00 per night | ₹15.00 per night | ₹28.40 per night |
| Mumbai | ₹14.40 per night | ₹18.75 per night | ₹32.24 per night |
| Bengaluru | ₹13.20 per night | ₹16.25 per night | ₹30.72 per night |
| Chennai | ₹12.00 per night | ₹15.00 per night | ₹28.40 per night |
| Hyderabad | ₹13.20 per night | ₹16.25 per night | ₹30.72 per night |
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% |
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% |
Note: The GST rates mentioned above are subject to change, and the actual tax rate may vary depending on the hotel's classification and location.