GST on hotel rooms in 2026: 5% or 18%?
Short answerA room up to ₹7,500 per night pays 5% GST, with no input tax credit. A room above ₹7,500 per night pays 18% GST, with input tax credit. The rate depends on the price you charge per room per night, not the star rating.
The rates
| Price per room per night | GST | Input tax credit |
|---|---|---|
| Up to ₹7,500 | 5% (2.5% CGST + 2.5% SGST) | No |
| Above ₹7,500 | 18% (9% CGST + 9% SGST) | Yes |
A guest from another state also pays CGST and SGST. For a hotel room, the place of supply is the hotel’s state.
Example
A room at ₹2,400 for 2 nights:
- Room charge: ₹4,800
- CGST 2.5%: ₹120
- SGST 2.5%: ₹120
- Total: ₹5,040
A room at ₹8,000 for 1 night pays 18%: ₹1,440 GST, total ₹9,440.
What changed in September 2025
Before 22 September 2025, rooms from ₹1,001 to ₹7,500 paid 12% with input tax credit. Now they pay 5% without credit. Guests pay less. The hotel cannot claim GST paid on its own purchases against these rooms.
What a GST hotel bill must show
- Hotel name, address and GSTIN
- Invoice number and date
- Guest name, and the company GSTIN for a business guest
- SAC code 996311 for room stay
- Room charge, CGST, SGST and total
A company guest needs the company GSTIN on the bill to claim credit. Ask for it at check-in, not at check-out.
Food bills
A hotel restaurant charges 5% GST on food, without credit, when no room was priced above ₹7,500 in the previous financial year. Otherwise food pays 18% with credit. Check with your CA.
Deskfull CRM picks 5% or 18% for each night by itself, prints the GSTIN and SAC code, and keeps the GST register for your CA. See the hotel software.
Questions
What is the GST on a hotel room of ₹1,000?
5%, without input tax credit. Every room up to ₹7,500 per night pays 5%.
What is the GST on a hotel room above ₹7,500?
18%, with input tax credit.
Does a 5-star hotel pay 18% GST on every room?
No. The rate follows the price per room per night. A room at ₹7,500 or less pays 5% in any hotel.
What is the SAC code for hotel rooms?
996311 for room and accommodation services.
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