GST Rate on Hotel Service

[Mehul Pandya]

Dear sir,

We are providing hotel rooms on rent (both AC and NON AC) ranging from 800 to 5000.

We have restaurant but we are not running it. We have given it to someone else on Fixed Monthly Rent of ₹ 35000/-

Pl. guide what will be the GST rate ???

[SANJEEV JADHAV]

Dear Sir,

Room charges upto ₹ 1000/- - Exempted.

Room charges between 1001/- to ₹ 2500/- - 12% with ITC.

Room charges between 2501/- to ₹ 7500/- - 18% with ITC

Room charges above ₹ 7501/- - 28% with ITC.

Regarding renting of resturant, you have to charge GST @ 18% on rent of resturant too.

[KASTURI SETHI]

I support the views of Sh.Sanjiv Jadhav Ji. See serial No.7 of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 as amended by Notifications No. 20/2017-C.T. (Rate), dated 22-8-2017; No. 24/2017-C.T. (Rate), dated 21-9-2017; No. 31/2017-C.T. (Rate), dated 13-10-2017; No. 46/2017-C.T. (Rate), dated 14-11-2017; No. 1/2018-C.T. (Rate), dated 25-1-2018; No. 13/2018-C.T. (Rate), dated 26-7-2018; No. 17/2018-C.T. (Rate), dated 26-7-2018; and No. 27/2018-C.T. (Rate), dated 31-12-2018 and No. 30/2018-C.T. (Rate), dated 31-12-2018.

AI Summary

GST rate on hotel rooms varies by tariff band with input tax credit; outsourced restaurant rent is taxable under GST. GST treatment of hotel accommodation is determined by tariff-based slabs: lower tariff band exemptions and higher tariff bands attract GST with input tax credit. Renting the restaurant premises on fixed monthly rent is a taxable supply attracting GST at the rate applicable to renting of commercial premises; the guidance cited serial provisions of Notification No. 11/2017-Central Tax (Rate) and its amendments.