🏨 GST on Hotel Room Rent (Accommodation)

The GST you pay on hotel room rent depends on the final invoiced room tariff per night (after any discounts):

✅ Important:
• The rate is based on the actual billed amount, not the “declared tariff” printed on the hotel’s website or tariff card. If discounts bring you under ₹7,500, you pay the lower 5% GST. 
• Input Tax Credit (ITC) — which lets businesses claim back GST paid — is only available at the 18% rate.

🍽️ GST on Other Hotel Services

• Restaurant / food services inside hotels:

  • In hotels where at least one room rate exceeds ₹7,500 in the year (“specified premises”), restaurant services are typically taxed at 18% with ITC. 

  • In other hotels, food services may be taxed at lower GST rates (e.g., 5%). 

• Banquets / meeting rooms / event spaces: Usually 18% GST. 

🧾 Example Calculations

• Room rent ₹6,000/night → GST = 5% → ₹300. 

• Room rent ₹9,000/night → GST = 18% → ₹1,620. 

📌 Summary

• Budget or mid-range stays (≤ ₹7,500) now attract 5% GST. 

• More expensive stays (> ₹7,500) attract 18% GST. 

• Very cheap stays (≤ ₹1,000) are GST exempt. 

• ITC is available only at the 18% level. 

Here’s a clear and simple explanation of GST on hotel restaurant bills and banquet services in India, as it works in practice 👇

🍽️ GST on Hotel Restaurant Bills

GST on food served in hotels depends mainly on whether the hotel is a “specified premises” or not.

🔹 What is a Specified Premises?

A hotel is treated as specified premises if any room in the hotel has a declared tariff above ₹7,500 per night at any time during the financial year.

✅ GST Rates on Restaurant Services

📌 Important points

• GST is charged on the restaurant bill amount, not on room rent.

• Even if you don’t stay in the hotel, the restaurant GST rate still depends on whether the hotel is specified or not.

• Alcohol is not covered under GST (state VAT applies instead).

🧾 Example (Restaurant)

• Dinner bill in a normal hotel restaurant = ₹2,000
  → GST @ 5% = ₹100
  → Total = ₹2,100

• Dinner bill in a luxury hotel restaurant = ₹2,000
  → GST @ 18% = ₹360
  → Total = ₹2,360

🎉 GST on Banquet / Function / Conference Services

Banquet halls, marriage halls, conference rooms, and event spaces in hotels are treated as separate services.

✅ GST Rate on Banquet Services

• 18% GST (almost always)

• Input Tax Credit (ITC) is available

This applies to:

• Hall rental

• Decoration charges

• Event packages

• Food included in banquet packages (composite supply)

🧾 Example (Banquet)

• Wedding banquet package = ₹3,00,000
  → GST @ 18% = ₹54,000
  → Total = ₹3,54,000

Even if food is included, the entire amount is taxed at 18%.

📌 Quick Summary

Restaurant

• 5% GST → normal hotels & standalone restaurants (no ITC)

• 18% GST → luxury / specified hotels (ITC allowed)

Banquet / Events

• 18% GST always

• ITC allowed

If you want, I can also explain:

• GST difference between room service food vs restaurant food

• How GST appears on a hotel invoice

• GST impact for business travelers

Just tell me 😊