Hotel rooms below Rs 7,500 will attract 18 % GST

Hotel rooms below Rs 7,500 will attract 18 % GST


New Delhi: The Finance Ministry today clarified that accommodation in any hotel, including five-star hotels, having a declared tariff of a unit of accommodation of less than Rs 7,500 per unit per day, will attract 18 per cent GST. In a statement issued here, it is clarified that star rating of hotels is irrelevant for determining the applicable rate of GST. The Finance Ministry was receiving reports expressing doubts whether five star hotels are liable to pay GST at 28 per cent irrespective of the declared tariff of a unit of accommodation.

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