18% GST on hotels with room tariff less than Rs 7500

Whether the hotel is a five star or not, if its room rent is 2500 rupees per day or more but if it is less than Rs 7500, then the tariff will be GST at 18%. Government has released this explanation on Tuesday.

According to the GST Council fixed rate structure, if the rate is 1000 rupees per room per day and above but less than 2500 rupees then the tax rate will be 12%. In cases where the room tariff is less than Rs 2500 and above but less than 7500 rupees per day, 18% of them will be GST.

The government said in a statement that some reports were being suspected that no matter what the room rent, 28 percent GST would be charged on five star hotels. “It is being clarified that if there is any hotel with five star, the GST will be less than Rs 7500 per unit per day on the tariff at the rate of 18 percent,” the statement said. There is no point in the star rating of hotels in determining the GST rate.

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