GST on Hotel Bills — Complete Guide for 2026

Master GST rates on hotel rooms, food, banquets & ITC rules. Learn how to create GST-compliant hotel invoices with our WhatsApp-based billing tool.

GST Rate on Hotel Rooms in India

The GST rate on hotel room charges depends on the room tariff (nightly rate). Here's the complete slab structure:

Room Tariff (Per Night) GST Rate CGST SGST
Up to ₹1,000 12% GST 6% 6%
₹1,001 to ₹7,500 12% GST 6% 6%
Above ₹7,500 18% GST 9% 9%

Key Points to Remember:

  • The room tariff is the nightly rate charged for accommodation, excluding GST and other charges.
  • GST is calculated on the room tariff only—not on food, laundry, or other services bundled separately.
  • The rate is determined by the highest room tariff in a hotel (luxury rooms determine the GST slab for the entire hotel).
  • Budget hotels with rooms ≤ ₹1,000/night pay only 12% GST—no ITC benefit, but lower taxes.
  • Premium hotels with rooms > ₹7,500/night pay 18% GST with full ITC eligibility.

GST on Hotel Food & Restaurant Services

Hotel food and restaurant services have a two-tier GST structure based on ITC (Input Tax Credit) eligibility:

Service Type GST Rate Eligibility
Restaurant/Food without ITC 5% GST Non-business customers, retail consumers
Restaurant/Food with ITC 18% GST Business customers, GST-registered entities

Understanding GST on Hotel Food:

5% GST (No ITC):

  • Applied to food and beverages served in restaurants, room service, and cafes.
  • Used when customers are consumers (no ITC claim).
  • ITC cannot be claimed—final tax for hotels.

18% GST (With ITC):

  • Applied when serving business/registered customers.
  • Full 18% GST with Input Tax Credit eligibility.
  • Customers can claim ITC on GST paid.

GST on Banquet & Conference Hall Charges

Hotel banquet halls, conference rooms, and event spaces attract a flat 18% GST rate:

Service GST Rate Notes
Banquet Hall Rental 18% GST Space booking only
Conference Room 18% GST Meeting/event space
Catering Services (inside banquet) 18% GST Food + venue together
Function Setup & Decoration 18% GST Services by hotel

Sample Hotel GST Bill - Visual Invoice

Here's an example of a properly formatted GST-compliant hotel invoice:

GRAND PLAZA HOTEL
GST Reg. No.: 27AABCT1234F1Z5 | Contact: +91-9876543210
Guest Name:
Rajesh Kumar
Invoice No.:
HB-2026-00145
Check-In:
12-Mar-2026
Check-Out:
14-Mar-2026
Description
Qty
Rate
Amount
Deluxe Room (AC, 2 Nights) @ ₹5,500/night
2
₹5,500
₹11,000
Room Service - Breakfast & Lunch
—
—
₹2,000
Laundry & Housekeeping
—
—
₹500
Subtotal (before tax)
₹13,500
Room Tariff GST Calculation (12%):

Base: ₹11,000

CGST (6%): ₹660

SGST (6%): ₹660

Subtotal: ₹12,320

Food & Services (18%):

Base: ₹2,500

CGST (9%): ₹225

SGST (9%): ₹225

Subtotal: ₹2,950

Total CGST
₹885
Total SGST
₹885
TOTAL BILL AMOUNT
₹15,270

How to Read Your Hotel Bill - Complete Breakdown

Understanding each line item on a hotel GST bill is crucial for expense tracking and ITC claims:

Room Tariff

The nightly rate for accommodation (AC, non-AC, deluxe, suite, etc.). This is the base for calculating room GST.

Service Tax (if applicable)

Certain hotels charge service charges separately (typically 5-10% of room bill). This is NOT GST—it's a hotel policy charge.

CGST (Central GST)

Half of the total GST goes to the Central Government. For 12% GST, CGST is 6%; for 18% GST, CGST is 9%.

SGST (State GST)

Other half goes to State Government. Same percentage as CGST. Together, CGST + SGST = Total GST.

Room Service & Food

Restaurant food, room service meals, and beverages attract separate 5% or 18% GST based on the buyer's ITC eligibility.

Ancillary Services

Laundry, parking, Wi-Fi, spa, gym, etc. typically attract 18% GST. Check invoice for individual rates.

ITC on Hotel Bills - Can You Claim Input Tax Credit?

Businesses can claim Input Tax Credit (ITC) on hotel bills under specific conditions:

When Can You Claim ITC on Hotel Bills?

  • Hotel stay is for business purposes: Attending conferences, business meetings, client entertainment, or work-related travel.
  • GST is shown separately: The hotel invoice must clearly display GST amount and GST registration number.
  • Supplier is GST registered: Hotel must have a valid GST certificate and GSTIN.
  • You are GST registered: Your business must be registered under GST to claim ITC.
  • Invoice conditions met: Invoice should have your business name/GSTIN or clearly indicate it's for a business purpose.

When ITC Cannot Be Claimed:

  • Personal leisure travel—ITC not allowed.
  • Hotel invoice doesn't show GST separately.
  • Staying at hotels with room tariff ≤ ₹1,000/night (12% GST, no ITC benefit)—these are exempt from ITC.
  • Unregistered hotels—no GST invoice means no ITC.
  • Food and beverages billed at 5% GST—no ITC eligible.

How to Claim ITC on Hotel Expenses:

  1. Request a proper GST invoice from the hotel with your GSTIN or business name.
  2. Ensure the invoice shows itemized charges: rooms, food, services, and GST separately.
  3. Keep invoice and supporting documents (check-in/check-out, flight tickets, meeting attendance) for audits.
  4. Report the hotel GST amount in your GSTR-2A (inward supplies) during GST return filing.
  5. Claim ITC in your GSTR-3B return in the month the invoice is received.

GST on OYO, Airbnb & Budget Hotels - Platform Bookings

Online booking platforms like OYO, Airbnb, and budget hotel chains follow GST rules, but the tax structure is slightly different:

OYO Rooms

  • Room GST: 12% for most OYO properties (room tariff ≤ ₹7,500).
  • Platform fee: Separate 5% GST charged by OYO as a commission.
  • Final invoice: Should show room GST and platform fee GST separately.
  • ITC: Can be claimed if for business purposes and proper invoice is obtained.

Airbnb

  • Host collections: If host is GST registered, GST on room rent applies.
  • Service fee: Airbnb's commission attracts 18% GST (with ITC).
  • Varying rates: Depending on the property (homestay, apartment, house), rates may differ.
  • GST invoice: Request invoice from the host if claiming business expense.

Budget Hotels (₹500-₹1,500/night)

  • GST rate: 12% GST (room tariff ≤ ₹1,000) — the most common tier.
  • ITC restriction: No ITC benefit on room charges if tariff ≤ ₹1,000.
  • Food & services: 5% or 18% GST depending on the type of service and buyer category.
  • Aggregators: If booked via Booking.com, MakeMyTrip, etc., their commission attracts 18% GST separately.

Hotel Owners — Create GST-Compliant Bills Easily

Managing GST invoicing for hotels can be complex with multiple tariff slabs, food charges, and ancillary services. GSTBill.app simplifies this for small and mid-sized hotel owners:

WhatsApp-Based Invoicing

Generate hotel GST bills instantly on WhatsApp. No login, no software—just type hotel details and get instant PDF invoices.

Automatic GST Calculation

Automatically applies correct GST rates based on room tariff slabs (12% or 18%) and service types (food, banquets, laundry).

CGST/SGST Split

All invoices automatically show CGST and SGST breakup for compliance with GST return filing (GSTR-1).

Multi-Item Invoices

Handle complex bills with rooms, food, laundry, room service, banquet halls, and other ancillary services in one invoice.

Guest Information

Automatically capture and store guest details, check-in/check-out dates, and room numbers for record-keeping.

Instant PDF & Email

Download invoice as PDF, share via WhatsApp, or email directly to guests. No printing needed.

Why Hotel Owners Love GSTBill.app

  • Zero learning curve: Use WhatsApp—no new app to download or software to learn.
  • Compliant invoices: Every invoice is GST-compliant with proper GSTIN, itemization, and tax breakup.
  • Affordable: Minimal cost compared to expensive billing software.
  • Instant support: Get help via WhatsApp if you have questions about GST rates or invoicing.
  • Perfect for multi-location hotels: Manage bills from multiple properties from a single WhatsApp chat.

Frequently Asked Questions (FAQ)

What is the GST rate on a ₹5,000/night hotel room? +
A room tariff of ₹5,000/night falls in the ₹1,001–₹7,500 bracket, so the GST rate is 12%. This breaks down as CGST 6% and SGST 6%. On ₹5,000, you pay ₹600 GST, making the total room bill ₹5,600.
Can I claim ITC on a hotel bill for a vacation? +
No, ITC cannot be claimed on hotel bills for personal or leisure travel. ITC is only eligible if the hotel stay is for business purposes—such as attending a business meeting, conference, or client entertainment.
Is there a difference in GST for rooms above ₹7,500 per night? +
Yes. Hotels with rooms priced above ₹7,500/night charge 18% GST (CGST 9%, SGST 9%). This applies to all luxury 5-star and premium properties. The 18% rate also applies to all services (food, banquets) in such hotels.
Why is GST lower for budget hotels? +
Budget hotels with room tariffs ≤ ₹1,000/night attract only 12% GST with NO ITC benefit. This is a government policy to promote affordable accommodation. The trade-off is no input tax credit for the hotel owner—it's a final tax. For premium hotels, the 18% rate allows ITC benefits.
What GST rate applies to hotel food and restaurant services? +
Hotel food attracts 5% GST without ITC for consumers, or 18% GST with ITC for business/registered customers. If you're a business buying meals at a hotel where you're staying, you might be charged 18% GST with ITC eligibility.
How do I get a proper GST invoice for hotel expenses? +
When checking out, provide your GSTIN or business name to the hotel front desk. Request an invoice with: (1) Hotel's GSTIN, (2) Itemized charges, (3) GST rates and amounts clearly shown, (4) CGST and SGST split, and (5) Your business name/GSTIN. Most hotels can issue this in seconds via email or PDF.

Ready to Generate GST-Compliant Hotel Bills?

Hotel owners and property managers can now create perfect GST invoices instantly on WhatsApp. No software, no downloads—just WhatsApp.

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