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GST on Hotel Booking in India: Rates and Bills
GST on hotel booking can make a bill look different from the room price you first saw. For hotel accommodation, the rate is 5% without input tax credit when the room value is Rs 7,500 or less per night, and 18% with input tax credit above that. The old 12% slab no longer applies.
Here’s how to read the room charge, food charges and invoice, whether you book directly or online.
GST rates on hotel rooms and the Rs 7,500 threshold
Since 22 September 2025, hotel accommodation with a value of Rs 7,500 or less per unit per day is taxed at 5% without input tax credit (ITC). Above Rs 7,500, the rate is 18% with ITC. The hotel accommodation rate applies to the accommodation charge. The hotel’s room tariff is the amount to check when you estimate the GST on your stay.
You may still see older charts that show 12% for rooms up to Rs 7,500. That was the rate before 22 September 2025. The Rs 7,500 line still matters, but it now separates 5% without ITC from 18% with ITC.
| What you’re checking | How to read it | What to confirm |
|---|---|---|
| Room accommodation | 5% without ITC up to Rs 7,500 per night; 18% with ITC above | Check that the invoice shows the room charge and tax clearly. |
| Rs 7,500 threshold | Still the dividing line, now between 5% and 18%. The old 12% slab no longer applies. | Ask the hotel to explain any rate that differs from the current rule. |
| Room plus other services | Food or other services may need separate tax treatment. | Check whether each charge is itemised on the bill. |
GST is calculated on the accommodation charge; separately billed services may affect the final bill. If a quote says taxes are extra, the final amount will be higher than the displayed room tariff.
Hotel Shiny Grand lists its direct room rates as taxes extra. The room rate is the starting point, not the final bill. If you’re checking stay costs near Guwahati Airport, its direct room-booking information gives the published room prices.
Input tax credit: what the rate means for businesses
ITC lets an eligible business offset GST paid on certain business costs against GST it owes, subject to tax rules. For hotel accommodation taxed at 5% without ITC, the hotel cannot claim ITC on inputs used for that accommodation service. A business guest also shouldn’t assume that the GST charged on the room is available as a credit.
This can feel counter-intuitive. In many business purchases, GST on the invoice may be considered for a credit claim. Here, the accommodation rate comes with a no-ITC condition. A company booking a room for an employee should therefore treat the GST amount as a cost unless its tax adviser confirms a different treatment applies to its specific case.
Keep the bill even if your accounts team can’t claim the tax as ITC. It can still support the expense record and show who stayed, when the stay took place, and what the hotel charged. Separate records also help the accounts team tell accommodation apart from meals or meeting costs.
For example, an employee may stay overnight before an early flight. The booking record can show the travel dates, while the tax invoice supports the room expense. If meals or event services appear as separate charges, ask the hotel to itemise them rather than grouping every amount under “room”.
At Hotel Shiny Grand, GST invoices are available for corporate stays, meetings and banquet events. Ask for the invoice details your accounts team needs when arranging the booking. Its direct room rates of Rs 2,500 to Rs 4,000 per night fall in the 5% band, so check the tax amount on the bill against that rate.
That last point matters when someone compares a quoted tariff with the final amount. Ask for the room charge and GST to be shown as separate figures. Then your finance team can record the expense without mistaking the tax for an added hotel fee.
Hotel GST invoices and bookings made online
A hotel GST invoice should make the supplier and the charge clear. The GST invoice rules provide a reference for invoice details and tax information. For a business stay, give the hotel the correct company name and GSTIN before the invoice is made.
Check the invoice for the hotel’s legal name and GSTIN, a unique invoice number, the invoice date, a description of the service, the taxable value and the tax amount. If your business is registered, check that the recipient details match its records. The invoice should make it possible to tell the room charge apart from any additional service.
Booking online does not, by itself, change the GST rate for the accommodation. The key is to confirm who is supplying the stay and who will issue the tax invoice. A booking confirmation or payment receipt may show that you paid, but it may not contain all the information your employer needs for its accounts.
Before paying, look at the price breakdown. Is the displayed amount the room tariff alone, or does it include tax? Does the booking record name the hotel as the service provider? If you need a company invoice, check how to request one and whether the hotel needs your business details before arrival.
When you check out, compare the invoice with the booking details. Look for the right dates and room charge, then check the GST calculation. If the invoice has a mistake, raise it with the hotel while you still have the booking details and payment record at hand.
Keep the booking confirmation and the final invoice together. For other booking terms, including the hotel room cancellation policy, read the conditions that apply to your stay before you confirm.
GST on meals, room service and bundled hotel packages
A hotel bill may include more than accommodation. Meals, room service or a package price can add separate charges, so don’t assume that every line follows the room GST rate. Ask the hotel to show what each amount covers and how the invoice treats it.
For a room-only booking, the taxable base is the accommodation charge. A food order added during the stay is a different charge from the room tariff. If the hotel sells a combined room-and-food package, the invoice should help you understand what has been included and how the total has been worked out.
That distinction is useful for a business traveller who needs to split expenses. A room charge may go to one expense category, while a meal or meeting charge may need another. An itemised bill gives the accounts team a clearer record than a single unexplained total.
At Hotel Shiny Grand, in-room dining comes from its chef-led in-house kitchen and restaurant. The hotel also provides catering for banquet events. If you’re arranging an event, ask for an itemised quote that separates the hall, food and applicable taxes. You can review the venue’s banquet hall and catering details before asking for a quote.
For a package, ask these questions before you pay:
- What does the room price include?
- Are meals or other services billed separately?
- Will the final invoice show each charge and its tax?
- Can the hotel provide the invoice in the name of the person or business paying?
For a package with several components, don’t guess the tax from the room rate alone. Use the itemised invoice and ask the hotel to explain any bundled charge that isn’t clear.
Check your hotel bill and avoid common GST mistakes
A quick check at checkout can catch a tax or billing issue before it reaches your expense claim. Match the bill with the booking confirmation first. Then check the room dates and tariff.
- Check the tax base. The room GST should relate to the accommodation charge, not an unexplained total.
- Check the rate. Rooms at Rs 7,500 or less per night are taxed at 5% without ITC, and rooms above that at 18%. Don’t rely on an old chart that shows 12%.
- Check each extra. Meals and other services should be clear enough to identify on the invoice.
- Check the invoice details. Confirm the supplier details, invoice date and number, taxable value, tax amount and business recipient details if needed.
- Keep proof of payment. Save the invoice with the booking confirmation and payment record.
A common mistake is comparing the room tariff with the final amount due and treating the difference as a tax error. The difference may include GST or other separately billed services. Ask for a line-by-line explanation before disputing the amount.
Another is requesting a company invoice only after the stay. If your employer needs a specific business name or GSTIN, share it before checkout and review the invoice before leaving. Hotel Shiny Grand provides GST invoices for corporate stays, meetings and banquet events.
Frequently asked questions
What is the current GST rate on hotel rooms in India?
The GST rate for hotel accommodation is 5% without input tax credit for rooms at Rs 7,500 or less per night, and 18% with input tax credit above that. The room tariff is the taxable base for accommodation. Check the invoice to see the room charge and tax as separate amounts, especially if your bill also includes food or other services.
Does the Rs 7,500 threshold still decide whether a hotel room is taxed at 5% or 12%?
No. Since 22 September 2025, the Rs 7,500 threshold splits hotel accommodation between 5% without ITC and 18% with ITC. The 12% rate in older explanations no longer applies. Check current government guidance and ask the hotel to explain any rate that doesn’t match the applicable rule.
Can a business claim ITC on GST paid for a hotel room?
Hotel accommodation taxed at 5% comes without ITC, so a business shouldn’t assume it can claim the room GST as a credit. Keep the invoice for the expense record, and ask your tax adviser how to treat it in your company’s accounts. The right treatment can depend on the facts of the booking.
Will an online hotel booking include a GST invoice?
Not every booking confirmation is a tax invoice. Check who supplies the accommodation and who will issue the invoice. If you need it for work, ask before booking how to request a GST invoice, then confirm that the final document has the right supplier and recipient details.
Is GST charged on hotel food and room service at the room rate?
Don’t assume food or room service uses the accommodation rate. These may appear as separate services, so check how the hotel has itemised the bill. For a combined package, ask what is included and request a clear breakdown of the charges and applicable tax.
Conclusion
When you book a hotel room, use 5% without ITC for rooms at Rs 7,500 or less (18% with ITC above that), then check the invoice for a clear breakdown of the room and any extras. For a work stay near Guwahati Airport, confirm your company’s invoice details before checkout. You can review Hotel Shiny Grand’s direct booking information on its website.
To book direct, visit Hotel Shiny Grand or WhatsApp +91 91815 56418.