--- title: "New GST for Hotel Room 2026: 0% / 5% / 18% Rate on Hotel Room Rent" description: "New GST rate on hotel rooms in 2026 is 0% below Rs.1,000, 5% up to Rs.7,500 and 18% above. Stay GST-compliant with Busy and apply the correct rate automatically" canonical: "https://busy.in/gst-rates/hotel-room/" author: "Hitesh Aggarwal" published: "2025-04-22T11:09:41.000Z" category: "GST Rates" --- - New GST rates for hotel rooms in India depend on the value of accommodation service per unit per day. Hotel rooms with a value up to ₹7,500 per unit per day attract **5% GST without Input Tax Credit (ITC)** from **22 September 2025**. - Before 22 September 2025, hotel accommodation services up to ₹7,500 per unit per day attracted **12% GST with ITC**. This category was revised to **5% GST without ITC** from 22 September 2025. - GST on hotel accommodation is calculated as per the applicable GST valuation provisions and value of supply. - Hotel services like restaurant dining, room service, banquet services, and spa treatments have separate GST treatment based on their applicable classification. - Input Tax Credit (ITC) availability depends on the nature of the expense, type of supply, and applicable GST conditions. # New GST for Hotel Rooms in India: Tax Rate Based on Tariff Booking a hotel room in India? Whether it’s for a vacation, a business trip, or a weekend getaway, it’s important to know how much of your bill goes to taxes. This guide explains the hotel room hsn code and gst rates, input tax credits, and exemptions. ## **New GST Rate on Hotel Rooms in India** The Government of India revised the GST structure applicable to hotel room tariffs effective **22 September 2025**. GST on hotel accommodation continues to be charged based on the applicable room tariff/value of supply category. Below is the updated GST structure, along with the earlier applicable rates for reference: ## **GST on Hotel Room Tariff (Per Night)** | Room Tariff (Per Night) | GST Rate (After 22nd Sept 2025) | GST Rate (Before 22nd Sept 2025) | Conditions | | --- | --- | --- | --- | | Up to ₹7,500 | 5% (Without ITC) | 12% (With ITC) | Hotel room HSN code and GST rate 5% applies for accommodation services up to ₹7,500 per unit per day without ITC. | | Above ₹7,500 | 18% (With ITC) | 18% (With ITC) | Higher-value hotel accommodation services | ## **Example Calculation** Suppose a hotel room has an original tariff of ₹8,000 per night, but after discount, the customer pays ₹6,500. Since the actual value of supply is ₹6,500, the applicable GST rate will be based on the applicable room tariff/value of supply provisions. GST = 5% of ₹6,500 GST = ₹325 Total amount payable = ₹6,825 GST calculation should be based on the applicable value of supply under GST rules. ![GST Rates for Hotel Rooms](https://busy-client.busy.in/media/4.png) ## **SAC Code for Hotel Services** Understanding the **hotel room rent HSN code and GST rate** helps businesses correctly identify the applicable classification and GST rate for accommodation services. Hotel accommodation services fall under **SAC 996311**, which is used for classifying lodging services provided by hotels, inns, guest houses, and similar accommodation providers. | Service Type | SAC Code | Description | GST Rate | | --- | --- | --- | --- | | Hotel accommodation | 996311 | Lodging services by hotels, inns, guest houses and similar accommodation services | 5% (Without ITC) for accommodation value up to ₹7,500 per unit per day; 18% (With ITC) for higher-value accommodation services | | Convention services | 996334 | Hall rentals, wedding venues and similar event services | 18% | **Get a Free Demo –** [**Best Billing and Invoicing Software**](https://busy.in/accounting-software/invoicing-and-gst-billing/) Live Demo Available Today ## Share Hotel Room Invoices with Guests via WhatsApp Instantly Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## How to Calculate GST on Hotel Bookings Let’s say you book a room for ₹5,000 per night for 3 nights: - **Base Amount** = ₹15,000 - **GST @5%** = ₹750 - **Total Bill** = ₹15,750 If the room tariff were above ₹7,500 per night, GST @18% would be applicable. ## **Input Tax Credit (ITC) for Businesses** Businesses that incur hotel expenses for official purposes can [**claim Input Tax Credit (ITC)**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on GST paid, provided: - The stay is used for official business purposes - A valid tax invoice with [**GSTIN**](https://busy.in/gst/gstin-everything-you-need-to-know/) is issued - The business is GST-registered However, **ITC is not available for personal travel or entertainment** expenses, as per Section 17(5) of the CGST Act. **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## **GST on Room Tariff vs Actual Payment** It’s important to remember: - GST on hotel accommodation is determined based on the applicable **value of supply** under GST provisions. - The GST rate is not automatically decided based on the original room price before an eligible discount. For example, if a room with an original price of ₹10,000 is offered at ₹6,999 after a valid discount, the applicable GST treatment will depend on the value of supply and relevant GST provisions. This ensures GST is calculated according to the applicable valuation rules. ## **Other Hotel Services and Their GST Rates** Hotels often offer additional services apart from room accommodation, such as restaurants, banquet facilities, laundry, and wellness services. These services have separate GST treatment based on their applicable classification. | Service Type | GST Rate | | --- | --- | | In-room dining | Applicable GST rate based on restaurant service classification | | Banquet services | 18% | | Laundry services | 18% | | Spa and wellness services | Applicable GST rate based on the nature and classification of the service | | Mini-bar items | Applicable GST rate based on product classification | GST treatment depends on the nature of the service and applicable GST provisions. ## **Final Thoughts** Whether you’re booking a budget stay or a luxury suite, knowing the hotel GST rates helps you avoid surprises on your final bill. For business travelers, understanding input credit rules ensures proper tax planning. The key takeaway, GST on hotels is slab-based, and the final cost can differ significantly depending on your room tariff and add-on services. ## About the author **Hitesh Aggarwal** As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience. ## Frequently asked questions ### Is GST applicable on homestays or OYO rooms? Yes, GST may apply to homestays or OYO rooms based on the applicable accommodation category and value of supply. Hotel accommodation services with a value of supply up to **₹7,500 per unit per day attract 5% GST without Input Tax Credit (ITC)** from **22 September 2025**. Rooms with a value above **₹7,500 per unit per day** attract the applicable higher GST rate as per GST provisions. ### Can GST be claimed on hotel expenses? Yes, if it's a business trip and you're GST-registered, you can claim ITC with a valid invoice. ### Is GST applicable on room service? Yes, GST may apply on room service depending on the applicable GST classification. Food and beverage services provided through room service generally follow the GST treatment applicable to restaurant services. The applicable GST rate depends on the nature of the supply and applicable GST provisions. ### Does GST apply to the discounted price or original tariff? GST applies to the **declared tariff**, not the discounted price. ### Are wedding venue bookings in hotels taxed? Yes, hotel banquet and convention hall rentals attract **18% GST**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)