GST on hotel rooms and restaurant food in India is calculated based on tariff slabs — not a flat rate. The rate a guest pays depends on what your room costs per night, and whether your restaurant is inside a hotel or standalone.
This page covers the current rates as applicable for the 2025–26 and 2026–27 financial years, including state-level additions and how non-GST registered properties handle invoicing.
Current GST slabs for hotel rooms and restaurant food, including non-GST registered properties. Updated for the 2025–26 and 2026–27 financial years.
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GST Rates for Hotel Rooms — 2026
These rates apply to the room tariff per night, as updated effective September 22, 2025:
| Room Tariff Per Night | GST Rate |
|---|---|
| Below ₹1,000 | 0% |
| ₹1,001 to ₹7,500 | 5% |
| Above ₹7,500 | 18% |
Important: The applicable GST rate is determined by the declared tariff (the price at which the room is offered), not the actual amount paid after discounts. If a room is listed at ₹8,000 but sold at ₹7,200 after a discount, 18% GST applies.
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GST Rates for Restaurant Food — 2026
| Type of Restaurant | GST Rate |
|---|---|
| Standalone restaurant (dine-in or takeaway) | 5% |
| Restaurant inside a hotel where room tariff is below ₹7,500 | 5% |
| Restaurant inside a hotel where room tariff is ₹7,500 or above | 18% |
Restaurants charging 5% GST cannot claim Input Tax Credit (ITC). Restaurants charging 18% can claim ITC. This distinction matters significantly for hotels with in-house dining at the higher slab.
State-Level Taxes in Addition to GST
Some states levy additional taxes on hotel stays that apply alongside central GST:
- Maharashtra — luxury tax of up to 20% applies to luxury hotel categories
- Karnataka — tourism tax of 1–3% on all hotel types
- Other states may have their own levies — check with your state's commercial tax authority for current rates
These are charged separately from GST and must appear as distinct line items on your invoice.
Non-GST Registered Hotels — How Invoicing Works
Not every hotel needs to be GST registered. If your annual turnover is below the GST registration threshold (currently ₹20 lakh for most states, ₹10 lakh for special category states), GST registration is not mandatory.
What this means for invoicing:
- You cannot charge GST on your invoices
- You cannot issue a GST invoice — only a regular bill or receipt
- Guests cannot claim ITC on payments made to you
- Your invoice must not include a GSTIN or GST line item
Zitlin supports both GST and non-GST invoicing. Non-GST registered properties generate clean invoices without any GST fields. If your registration status changes, you update it once in your account settings and all future invoices reflect the correct format automatically.
GST on Advance Deposits and Folios
GST applies at the point of supply — which for hotels means at the time of check-out or invoice generation, not at the time of advance deposit collection. However, if a tax invoice is issued against the advance, GST must be accounted for at that point.
Practically this means:
- Advance deposit receipts are not tax invoices — they should not show GST
- The final folio invoice at checkout carries the applicable GST
- Cancellation charges are taxable at the same GST rate as the original booking
Zitlin handles this automatically — advance deposits are recorded without GST, and the final invoice calculates the correct slab based on your room tariff.
GST on Hourly and Day Use Bookings
Hourly hotel bookings follow the same tariff-based slab system, but the applicable rate is calculated on the equivalent nightly tariff, not the hourly amount charged. If your declared nightly rate is ₹5,000 and you charge ₹1,500 for a 4-hour stay, the applicable GST is 5% — based on the ₹5,000 nightly tariff.
How Zitlin Handles GST Automatically
Zitlin calculates GST automatically on every invoice based on:
- Your declared room tariff per room type
- Whether your restaurant is inside a GST-registered hotel or standalone
- Whether you are GST registered or not
- State-level tax rules where applicable
You do not manually select a GST rate per booking. Zitlin applies the correct slab based on the tariff set in your room configuration. If a room's tariff changes, the GST rate updates on future invoices automatically.
Frequently Asked Questions
What GST rate applies if my room tariff is exactly ₹1,000? The 0% slab applies to tariffs below ₹1,000. A tariff of exactly ₹1,000 falls into the 5% slab (₹1,001–₹7,500). Set your tariff at ₹999 if you want to stay in the 0% bracket.
What GST rate applies if my room tariff is exactly ₹7,500? ₹7,500 falls in the 5% slab. The 18% rate applies to tariffs above ₹7,500, so ₹7,501 and above.
Do I charge GST on food if my hotel rooms are below ₹7,500? Yes, but at 5%. Restaurant food in a hotel with room tariffs below ₹7,500 is taxed at 5%, the same as a standalone restaurant.
Can I issue a GST invoice if I'm not GST registered? No. Only GST-registered businesses can issue GST invoices. If you are not registered, you issue a regular bill without GST fields.
Does GST apply to cancellation charges? Yes. Cancellation charges are taxable at the same GST rate that would have applied to the original booking.
Does Zitlin support non-GST hotels? Yes. Non-GST registered properties can use Zitlin fully — invoices are generated without GST fields. You select your registration status once during setup.
What happens when GST rates change? Update your room tariff settings in Zitlin if your property moves between slabs. The system applies the correct rate to all future invoices from that point.
Note: GST rates and thresholds are set by the Government of India and are subject to change. Always verify current rates with a qualified tax professional or the GST Council's official notifications.