Centre Conducted No Study on 5% GST Regime Without ITC for Hotel Accommodation Services

The Central Government has informed Parliament that it has not undertaken any post-implementation review or data-based assessment of the impact of the GST rate rationalisation for hotel accommodation services on occupancy rates, tourist footfall, affordability, or revenue trends in the hospitality sector. 

The Government also clarified that no proposal is currently pending before the GST Council to review the existing 5% GST regime without Input Tax Credit (ITC) for hotel accommodation services. 

The clarification came in response to Lok Sabha Unstarred Question No. 108, answered by Minister of State for Finance Pankaj Chaudhary on July 20, 2026, regarding post-GST rationalisation trends in the tourism and hospitality sector. 

Source : https://www.jurishour.in/gst/centre-regime-itc-hotel-accommodation-services-review-gst-council/