GST related Query - Hotel Accomodation

[Preeti Gupta]

In case of hotel accommodation, the applicable tax rate is based on either the tariff rate or the actual charge. Further, after 22-09-2025, since no ITC will be available for room rent per day, please confirm whether ITC-03 needs to be submitted.

AI Summary

GST on hotel rooms: Tariff sets slab but tax on actual charge; reverse unused ITC under Rule 42/43 from 22-09-2025 For hotel accommodation, the GST slab is determined by the declared tariff (room rent per day) but tax is payable on the actual amount charged. With effect from 22-09-2025, input tax credit will not be available for room rent per day; any unutilised ITC already availed on inputs, services or capital goods related to hotel rooms must be reversed in GSTR-3B under Rule 42/43.