GST Rates on Hotel Accommodation (including 5 Star) below Rs. 7,500: CBEC Clarification

CBEC Clarification on Applicable Rates of GST Rates for Hotel Accommodation below Rs. 7,500 (including in 5 Star Hotels)

CBEC has clarified that hotel room accommodation, including in 5-star hotels, having a declared daily room tariff of INR 7,500 or below, will attract GST @ 18% and that Star rating of hotels is irrelevant for determining the applicable GST rate in respect thereof.

CBEC has stated in it’s Press Release dt. 18 July 2017 that reports have been received expressing doubts whether 5-star Hotels are liable to pay GST @ 28%, irrespective of the declared tariff of a unit of accommodation.

Accordingly, the CBEC has clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7,500 per unit per day, will attract GST @ 18%. Therefore, Star rating of hotels is irrelevant while determining the applicable rate of GST.

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