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┬áthat 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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