GST on Hotel Rooms & Restaurant — Rates 2025-26

Q: What is the GST rate on hotel rooms in India?

GST on hotel accommodation: Tariff below ₹7,500/night: 12% GST. Tariff ₹7,500 and above/night: 18% GST. Tariff below ₹1,000/night: Nil GST (exempt from July 2022 onwards — previously exempt below ₹1,000 based on transaction value). GST is charged on the actual transaction value (room rent charged), not the declared tariff. Hotels with GST registration must charge GST on room rent. Input tax credit (ITC) is available to registered businesses on hotel accommodation as business expense.

Q: What is the GST rate on restaurant food in India?

Restaurant GST rates: Standalone restaurants (non-AC, non-liquor): 5% (no ITC); AC restaurants: 5% (no ITC) — AC/non-AC distinction removed in 2019; Restaurants in hotels with tariff ≥ ₹7,500/night: 18% (with ITC); Outdoor catering: 5% (no ITC); Swiggy/Zomato delivery: 5% (charged by platform, not restaurant). Composition scheme restaurants: 5% with no ITC (₹1.5Cr turnover limit). Packaged food items sold in restaurants: standard GST rates apply (0%, 5%, 12%).

Q: Can a hotel guest claim ITC on room GST?

Yes, if you are a GST-registered business travelling for business purposes, you can claim ITC on hotel room GST. Condition: obtain a GST invoice from the hotel showing your company GSTIN. Block list under Section 17(5) does NOT block hotel ITC for employees on business travel. However, ITC on hotel stay for personal/recreational purposes (team parties, leisure) is blocked. Ensure the invoice has your company name and GSTIN — a personal/cash receipt without GSTIN cannot be used for ITC.

Q: Is GST charged on hotel banquet and conference rooms?

Hotel banquet halls and conference rooms: 18% GST on banquet/conference room rental as it is a service. Food and beverages served in banquet: 5% GST (outdoor catering rate). Audio-visual equipment rental bundled with hall: 18% on composite supply (principal supply rate applies). Wedding packages at hotels: composite supply — 18% on package if principal supply is the venue; 5% if food is the principal supply. Check hotel invoice carefully to ensure correct GST rates are applied.

Q: What is the GST rate on homestays and Airbnb in India?

GST on homestays and Airbnb (2025): Rent below ₹7,500/night: 12% if the host is GST-registered. Rent below ₹20 lakh/year: host not required to register for GST (below threshold). Airbnb/OTA (Online Travel Aggregator): if gross booking value is less than ₹7,500/night → 12%; ₹7,500 and above → 18%. GST registration is mandatory for OTAs regardless of turnover (as e-commerce operators). Small homestay owners with annual turnover below ₹20L can operate without GST registration.

Updated: 3 June 2026 | GST Act 2017 | Hospitality Sector

GST on hotel rooms: Nil (below ₹1,000/night), 12% (₹1,000–₹7,499/night), 18% (₹7,500+/night). Restaurant food: 5% (standalone, no ITC), 18% (restaurant in hotel with tariff ≥ ₹7,500/night). Banquet halls and conference rooms: 18%. Registered businesses can claim ITC on hotel GST for business travel.

5% / 18%

Restaurant food GST: 5% (standalone) or 18% (hotel restaurant with tariff ≥ ₹7,500).
Zomato/Swiggy delivery: 5% GST charged by platform. No ITC for standalone restaurants.

Hotel Room GST Rates

Room Tariff (per night)	GST Rate	ITC Available?
Below ₹1,000	Nil (0%)	No (exempt supply)
₹1,000 – ₹7,499	12%	Yes (for B2B)
₹7,500 and above	18%	Yes (for B2B)

Note: GST applies on the transaction value (amount actually charged), not the declared tariff. If a hotel quotes ₹7,500 but offers a ₹500 discount and charges ₹7,000 — the applicable GST rate is 12%.

Restaurant & Food Service GST Rates

Service Type	GST Rate	ITC	Notes
Standalone restaurant (AC/non-AC)	5%	No	AC distinction removed in 2019
Restaurant in hotel (tariff < ₹7,500)	5%	No	—
Restaurant in hotel (tariff ≥ ₹7,500)	18%	Yes	Luxury hotel restaurants
Outdoor catering (parties, events)	5%	No	—
Cloud kitchens / delivery-only	5%	No	Same as restaurant
Composition scheme restaurant	5%	No	Turnover ≤ ₹1.5Cr
Zomato / Swiggy (platform)	5%	No	OTA collects GST

Banquet, Conference & Other Hotel Services

Service	GST Rate	ITC
Banquet hall / wedding venue rental	18%	Yes (B2B)
Conference room rental	18%	Yes (B2B)
Food served at banquet	5%	No
Health club / spa at hotel	18%	Yes (B2B)
Laundry service at hotel	18%	Yes (B2B)
Internet / Wi-Fi charges	18%	Yes (B2B)
Parking at hotel	18%	Yes (B2B)

Frequently Asked Questions

What is the GST rate on hotel rooms in India?

GST on hotel accommodation: Tariff below ₹7,500/night: 12% GST. Tariff ₹7,500 and above/night: 18% GST. Tariff below ₹1,000/night: Nil GST (exempt from July 2022 onwards — previously exempt below ₹1,000 based on transaction value). GST is charged on the actual transaction value (room rent charged), not the declared tariff. Hotels with GST registration must charge GST on room rent. Input tax credit (ITC) is available to registered businesses on hotel accommodation as business expense.

What is the GST rate on restaurant food in India?

Restaurant GST rates: Standalone restaurants (non-AC, non-liquor): 5% (no ITC); AC restaurants: 5% (no ITC) — AC/non-AC distinction removed in 2019; Restaurants in hotels with tariff ≥ ₹7,500/night: 18% (with ITC); Outdoor catering: 5% (no ITC); Swiggy/Zomato delivery: 5% (charged by platform, not restaurant). Composition scheme restaurants: 5% with no ITC (₹1.5Cr turnover limit). Packaged food items sold in restaurants: standard GST rates apply (0%, 5%, 12%).

Can a hotel guest claim ITC on room GST?

Yes, if you are a GST-registered business travelling for business purposes, you can claim ITC on hotel room GST. Condition: obtain a GST invoice from the hotel showing your company GSTIN. Block list under Section 17(5) does NOT block hotel ITC for employees on business travel. However, ITC on hotel stay for personal/recreational purposes (team parties, leisure) is blocked. Ensure the invoice has your company name and GSTIN — a personal/cash receipt without GSTIN cannot be used for ITC.

Is GST charged on hotel banquet and conference rooms?

Hotel banquet halls and conference rooms: 18% GST on banquet/conference room rental as it is a service. Food and beverages served in banquet: 5% GST (outdoor catering rate). Audio-visual equipment rental bundled with hall: 18% on composite supply (principal supply rate applies). Wedding packages at hotels: composite supply — 18% on package if principal supply is the venue; 5% if food is the principal supply. Check hotel invoice carefully to ensure correct GST rates are applied.

What is the GST rate on homestays and Airbnb in India?

GST on homestays and Airbnb (2025): Rent below ₹7,500/night: 12% if the host is GST-registered. Rent below ₹20 lakh/year: host not required to register for GST (below threshold). Airbnb/OTA (Online Travel Aggregator): if gross booking value is less than ₹7,500/night → 12%; ₹7,500 and above → 18%. GST registration is mandatory for OTAs regardless of turnover (as e-commerce operators). Small homestay owners with annual turnover below ₹20L can operate without GST registration.

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