Reports have been received expressing doubts whether 5-star Hotels are liable to pay GST @ 28% irrespective of the declared tariff of a unit of accommodation.

In this context, it is hereby clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%. Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST.

GST rate on hotel accommodation depends on declared tariff, not star rating, applying lower-rate threshold rules. Accommodation in hotels with a declared tariff below INR 7500 per unit per day attracts GST at 18%; hotel star rating, including 5 star status, is irrelevant to determining the applicable GST rate, and the declared per unit per day tariff is the operative criterion for tax rate determination for hotel accommodation supplies.