TaxTMI 
TaxTMI 
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.
GST related Query - Hotel Accomodation
25 Sep 2025 
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Input tax credit reversal for hotel accommodation where ITC is disallowed requires GSTR 3B reversals under Rule 42/43.
GST on hotel accommodation is classified by the declared tariff but taxed on the actual amount charged. Where ITC on room rent is disallowed, affected unutilised input tax credit must be reversed through Rule 42 and Rule 43 in GSTR 3B. ITC 03 applies only when a supply becomes wholly exempt; a rate reduction without exemption necessitates reversal under rules 42/43 and year end reconciliation rather than ITC 03 filing. (AI Summary)
GST on hotel accommodation is classified by the declared tariff but taxed on the actual amount charged. Where ITC on room rent is disallowed, affected unutilised input tax credit must be reversed through Rule 42 and Rule 43 in GSTR 3B. ITC 03 applies only when a supply becomes wholly exempt; a rate reduction without exemption necessitates reversal under rules 42/43 and year end reconciliation rather than ITC 03 filing. (AI Summary)