EY–FICCI proposal on GST for premium stays: How current slabs work
A report by Ernst & Young LLP, in collaboration with Federation of Indian Chambers of Commerce & Industry, has outlined the existing Goods and Services Tax (GST) structure for hotel accommodations while suggesting changes to certain segments.
Here is a look at how GST currently applies to hotel room tariffs in India.Slab-based taxation linked to room tariff
GST on hotel accommodation in India is determined based on the declared room tariff per night. The system follows a slab structure:
- Below Rs.1,000 per night: No GST is levied
- Rs.1,000 to Rs.7,500 per night: 5% GST is applicable, without input tax credit
- Above Rs.7,500 per night: 18% GST is applicable, with input tax credit
This classification applies uniformly across hotels, irrespective of brand or location, and is linked to the room rate rather than the category of the property.
