GST on hotels in India is determined by the declared room tariff per night — the published rate for each room category. Rooms with a declared tariff below ₹1,000 per night are fully exempt from GST. Rooms with a declared tariff between ₹1,001 and ₹7,500 per night attract 5% GST without ITC. Rooms with a declared tariff above ₹7,500 per night attract 18% GST with full ITC available. These rates are effective from 22nd September 2025 following the 56th GST Council meeting. The GST is always applied on the declared tariff — not on the discounted price a guest may pay through OTAs or direct booking portals.

The current GST rates on hotel rooms effective from 22nd September 2025 are — 0% for rooms with declared tariff below ₹1,000 per night, 5% without ITC for rooms with declared tariff between ₹1,001 and ₹7,500 per night, and 18% with ITC for rooms with declared tariff above ₹7,500 per night. An important point — GST is charged on the declared tariff and not the actual amount paid. If a room has a declared tariff of ₹9,000 but is booked for ₹6,500 through a discount portal, GST at 18% applies on the declared ₹9,000 rate since the declared tariff exceeds ₹7,500.

GSTR-1 is the outward supply return filed by the 11th of every month — the hotel reports all room invoices, restaurant bills, banquet bookings, and other taxable service invoices raised during the previous month. GSTR-3B is the summary return filed by the 20th — the hotel reports total GST collected across all services, claims eligible ITC on vendor invoices, and pays the net GST due. Hotels with multiple revenue streams must report each service type separately with the correct GST rate. Tax Robo prepares and files both GSTR-1 and GSTR-3B accurately every month.

For GST on hotel room charges India, the rate is always based on the declared tariff — not the OTA price. If a hotel room has a declared tariff of ₹8,000 per night and a guest books it for ₹6,000 through MakeMyTrip or Goibibo, the hotel still charges 18% GST on the declared tariff of ₹8,000. The difference between declared and OTA price is the OTA’s commission — the hotel’s GST liability is calculated on the full declared room rate. Hotels must maintain their declared tariff records carefully as GST officers may verify the declared tariff during audits and assessments.

GST on hotel restaurant and food depends on whether the hotel is classified as specified premises. A hotel is a specified premises if any of its room tariffs exceed ₹7,500 per night in the previous financial year. Restaurants in specified premises attract 18% GST with full ITC available on food and beverage inputs. Restaurants in non-specified hotels (all rooms below ₹7,500) attract 5% GST without ITC. Room service billed separately also follows these rates. This classification applies even to guests dining at the restaurant without staying at the hotel. Tax Robo correctly identifies your hotel’s classification and applies the right rate every month.

GST on banquet hall in hotel is charged at 18% regardless of the hotel’s room tariff category. Banquet hall rental for weddings, conferences, and corporate events attracts 18% GST with ITC available to the hotel on inputs used for the event. If the banquet package includes catering and food as a composite supply with the hall rental as the primary service, 18% GST applies on the entire package with ITC. Standalone outdoor catering services from non-specified premises attract 5% GST without ITC. Hotels must issue separate invoices for room accommodation and banquet services to correctly classify GST rates for each.

GST registration for hotel in India is mandatory when annual taxable turnover exceeds ₹20 lakhs. For hotels in special category states — Himachal Pradesh, Uttarakhand, and all North-Eastern states — the threshold is ₹10 lakhs. Very small guesthouses and homestays with all room tariffs below ₹1,000 per night and total turnover below ₹20 lakhs are generally exempt. However, registration is strongly recommended even for smaller properties — it allows the hotel to claim ITC on purchases, issue GST-compliant invoices to corporate clients who require ITC, and avoid complications when turnover increases. Tax Robo handles complete GST registration and monthly filing for hotels of all sizes.

If a hotel misses the GST return due date, a late fee of ₹50 per day (₹25 CGST + ₹25 SGST) is charged for returns with tax liability, subject to a maximum of ₹5,000 per return. For nil returns the late fee is ₹20 per day. Interest at 18% per annum is charged on unpaid GST from the due date. For hotels with corporate clients, delayed filing also blocks the client’s ITC claims — which can damage business relationships and lead to contract disputes. Repeated non-filing can also lead to GST registration cancellation. Tax Robo files all GSTR-1 and GSTR-3B returns before the deadline every month without exception.