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GST Rates on Hotel Rooms and Restaurants in India
GST rates on hotel rooms and restaurants in India can depend on what you’re paying for and how the service is classified. For rooms priced up to ₹7,500 per night, current guidance generally places the rate at 5% without input tax credit, but older official wording creates a conflict worth checking before you rely on a rate.
We analyzed 63 comments and questions from YouTube, Reddit and Quora about GST Rates for hotel rooms and Restaurants and found that 43% mentioned GST slabs based on room-tariff thresholds.
Here’s how room charges and food bills are treated, what to look for on an invoice, and how Hotel Shiny Grand’s room rates fit into the current guidance.
GST on Hotel Rooms: Rates and Tariff Conditions
Hotel accommodation is taxed separately from meals, event catering and other services. The rate for a room is linked to its nightly value, not to whether the room is called standard, deluxe or executive. Air conditioning or a hotel’s star rating does not by itself decide the room rate.
Under the post-change rate structure, accommodation priced up to ₹7,500 per room per night is generally taxed at 5%, without input tax credit (ITC). A room priced above ₹7,500 per night is generally taxed at 18%, with ITC available to the supplier, subject to the applicable rules. The revised rates took effect on 22 September 2025. For further information, see this official reference.
For further reading, see this reference. If you’re responsible for billing, confirm the applicable rate with your tax adviser and use the current GST notification as the final reference.
Hotel Shiny Grand lists direct room rates from ₹2,500 to ₹5,000 per night, with taxes extra. Those prices fall within the up-to-₹7,500 band under the newer structure. Guests should still check that the GST shown on their invoice matches the hotel’s current classification and billing practice.
The room rate is one part of the total bill. A meal, airport transfer or event service may be treated separately, so don’t assume every line follows the room’s GST rate. If a discount changes the amount charged, ask the hotel how it has used the billed value to classify the room.
GST on Restaurant Services in India
Restaurant charges are not automatically taxed at the same rate as the room. The type of restaurant service and the premises where it is supplied can affect the rate. Dine-in and takeaway food should be checked as restaurant services, while a hotel stay and a meal can appear as separate lines on one bill.
Restaurant services are generally taxed at 5% without ITC. A restaurant in specified hotel premises may fall under an 18% rate with ITC, depending on the applicable classification. The current notification and the restaurant’s premises status are the right checks when a bill uses a different rate.
Catering needs its own check. A meal supplied as part of an event or banquet may be billed as catering, rather than as an ordinary restaurant meal. Ask the venue to show the food or catering charge separately from hall hire and other event costs. That makes it easier to see which amount each tax line applies to.
Hotel Shiny Grand has a chef-led in-house kitchen and restaurant with room dining, along with catering for events. The menu lists more than 120 dishes, and direct-booking room stays include breakfast. A guest should look at the bill to see whether a meal is included in the room rate or charged as a separate item.
For restaurants using the composition scheme, eligibility and the scheme’s conditions matter. Don’t assume a flat rate applies just because a restaurant is small. The business should confirm its eligibility and current scheme rules with a tax professional before choosing that route.
When you’re comparing food charges, focus on the service named on the invoice. A restaurant meal, banquet catering and accommodation are different supplies, even if one hotel provides them all.
How to Read the GST Lines on a Hotel or Restaurant Bill
Start with the taxable value, then check which service it belongs to. A clear bill should let you distinguish the room charge from food, catering or any other service. Check the rate beside each charge rather than treating the invoice total as one taxable amount.
For a simple example, imagine a room charge of ₹2,500 and a separate meal charge of ₹1,000. If both are correctly classified at 5%, tax is calculated separately on the room and meal charges. The combined amount is ₹3,675 before any other bill items. This example shows the maths only; the actual rate depends on the service and current GST rules.
| Invoice line | What to check | Why it helps |
|---|---|---|
| Room accommodation | Nightly charge and rate shown | Confirms the room’s rate band is being applied to the room line. |
| Food or room dining | Whether it is included or separately billed | Shows if the meal is treated as a separate restaurant service. |
| Banquet catering | Food charge and any hall charge shown distinctly | Helps separate catering from venue hire and other event costs. |
| Tax split | Check the tax labels and amounts against the taxable value | Makes it easier to spot a mismatch or ask a focused question. |
If a bill shows CGST and SGST, check that the two tax amounts add up to the GST charged on that line. If the bill uses another tax label, ask the hotel to explain which supply it applies to. Keep the invoice with your booking record, especially if your employer needs it for expense records.
Hotel Shiny Grand provides GST invoices for corporate stays and event bookings. If your employer needs the invoice in a particular name or needs a clear split between room and food charges, confirm the billing details before checkout or before finalising an event bill.
What Hotel Guests and Business Travellers Should Check
Before paying, make sure you know whether the quoted room rate includes tax. Hotel Shiny Grand’s listed room prices are before taxes, so the final amount will include applicable GST. For a work trip, ask for a GST invoice and check that the business details your employer needs are correct.
Check meals separately. Complimentary breakfast on a direct booking may be part of the stay arrangement, while an extra meal may be billed on its own. If you order room dining, keep the food charge distinct from the room charge on your expense claim.
For a company booking, ask the hotel to confirm the room rate, tax treatment and invoice name before the stay. If your accounts team expects to claim ITC, don’t assume that a business trip makes the room tax eligible. The lower room rate band is generally associated with 5% GST without ITC, so the employee’s invoice may not support an ITC claim.
Hotel Shiny Grand’s direct-booking rooms range from ₹2,500 to ₹5,000 per night, taxes extra. Direct bookings include breakfast, Wi-Fi, parking and one complimentary one-way airport transfer (pickup or drop). For arrival, departure and the hotel room cancellation policy, confirm the booking terms that apply to your dates.
Event organisers should ask for a separate, itemised quote. Hotel Shiny Grand’s banquet catering is available for any guest count, tailored to your requirements, with per-plate rates that vary by package. Hall rental starts from ₹25,000 and is waived for 60 or more guests. Ask how the quote separates food, hall hire and applicable taxes before you approve the final layout or menu.
One useful rule for any stay: compare the invoice with the booking confirmation, not with a remembered headline rate. The booking record helps explain the base charge; the bill shows the tax applied to each service.
FAQs on GST Rates for Hotel Rooms and Restaurants
What is the GST rate on a hotel room below ₹7,500?
The current rate structure generally places a room priced up to ₹7,500 per night at 5% GST without ITC. Guests can check the rate and taxable room value shown on their invoice.
Is restaurant GST the same as hotel room GST?
No, restaurant services and hotel accommodation are separate supplies, so they may have different GST treatment. Restaurant services are generally taxed at 5% without ITC, while services in specified hotel premises may be taxed differently. Check the invoice line and the premises classification rather than assuming the room rate applies to food.
Does GST apply to takeaway food from a hotel restaurant?
Takeaway food is generally treated as a restaurant service, but the rate still depends on the applicable service classification. Check whether the bill identifies the charge as food or another service. If a hotel applies a rate you don’t expect, ask for the basis of that classification and confirm it with a tax adviser if needed.
Can a business claim ITC on a hotel room bill?
Not on every hotel room bill. The lower room rate band is generally taxed at 5% without ITC, even when a company books the room for work. A business should check the rate and the applicable ITC rules before including the tax in a claim. Ask the hotel for a GST invoice with the room charge shown clearly.
What should a hotel GST invoice show?
A hotel invoice should make it possible to identify the billed service, its taxable value and the tax charged. Check that room charges are distinct from meals or event services when those items are billed separately. If your employer needs the invoice in a specific business name, share that requirement with the hotel before the bill is prepared.
Conclusion
Check each room, meal or event line on its own, and verify unusual rates against the current GST notification. If you’re planning a stay near Guwahati Airport, review Hotel Shiny Grand’s direct-booking details and confirm your invoice needs when you book a room directly.