Talk to usHotel GST calculator
What GST actually lands on a room night in India, on the rates in force since 22 September 2025 — the ₹7,500 line, the food side of the bill, and the CGST/SGST split. Nothing to sign up for and no email at the end.
| Room, taxable value | ₹2,500.00 |
|---|---|
| CGST 2.5% | ₹62.50 |
| SGST 2.5% | ₹62.50 |
| Guest pays | ₹2,625.00 |
Accommodation is always CGST + SGST — the place of supply is the hotel itself, so there is no IGST case for the room even when the guest is from another state.
The rules it is applying
Room: two rates and one line
Since 22 September 2025 there are two accommodation rates and nothing in between. A room whose value of supply is ₹7,500 or less per unit per day is taxed at 5% without input tax credit. Above that it is 18% with full credit. The 12% slab is gone, and so is the old exemption for rooms under ₹1,000 — that ended on 18 July 2022, so any calculator still offering you a 0% band is more than three years out of date.
It is also per unit per day. Three nights in a ₹4,000 room are three separate ₹4,000 supplies at 5%; they do not add up to ₹12,000 and cross the line. Two rooms on one folio are judged the same way, separately.
Food: decided by last year, not by tonight
The restaurant inside the hotel is 18% with credit at a “specified premises” and 5% without credit everywhere else. A hotel is a specified premises if any unit of accommodation was supplied above ₹7,500 per unit per day in the preceding financial year, or if it filed an opt-in declaration between 1 January and 31 March. That is why this page asks you instead of guessing from the room rate you just typed — the two tests take different inputs, and a calculator that infers one from the other will be wrong for every hotel that had one good suite last year.
Always CGST + SGST
The place of supply for accommodation is the property itself, so a room night is an intra-state supply wherever the guest came from. There is no IGST case for the room, and a guest's out-of-state GSTIN does not change it.
Room plus meals sold as one package
That is a composite supply — taxed once, at the accommodation rate, on the combined value. Pricing a package by taxing the room and the food separately and adding the two produces a different number, and it is the error that surfaces when a return is reconciled against the folios. The longer guide works through it.
Where these numbers come from
Rates are per Notification No. 11/2017–Central Tax (Rate) as amended, the 56th GST Council's rationalisation effective 22 September 2025, and the “specified premises” amendments effective 1 April 2025. This is the same slab logic StayFlint bills on in production, not a separate reading of the notification.
It is a calculator, not advice. Where a booking has something unusual in it — a long-stay contract, a foreign-currency tariff, a banquet sold with catering — check it with your CA before it reaches a return.
Hotel GST — the questions we actually get
What is the GST rate on a hotel room in India right now?
Two rates. A room whose value of supply is ₹7,500 or less per unit per day is taxed at 5% with no input tax credit. Above ₹7,500 it is 18% with full input tax credit. This has been the position since 22 September 2025, when the 56th GST Council removed the 12% slab.
Is there still a GST exemption for rooms under ₹1,000?
No. That exemption was withdrawn on 18 July 2022. Every room night is taxable now — a ₹600 room is a 5% room, not an exempt one. Calculators and articles still showing a 0% band are out of date by more than three years.
Is the ₹7,500 threshold based on my rack rate or on what I actually charge?
On what you actually charge. The rate notification uses the value of supply of the unit of accommodation, not the declared or rack tariff. A room carded at ₹8,000 and sold at ₹6,800 is taxed at 5% on ₹6,800. This is the single most common mistake made in the other direction — hotels billing 18% because the tariff card says ₹8,000.
Is the threshold per room per night, or on the whole bill?
Per unit of accommodation per day. A three-night stay in a ₹4,000 room is three ₹4,000 supplies at 5%, not one ₹12,000 supply at 18%. Two rooms on one folio are likewise judged separately.
What GST applies to the restaurant inside the hotel?
18% with input tax credit if the hotel is a specified premises, otherwise 5% without it. Specified premises means any unit of accommodation was supplied above ₹7,500 per unit per day in the preceding financial year, or the hotel filed an opt-in declaration between 1 January and 31 March. It is decided by last year, not by tonight's room rate — so a hotel can sit in the 5% room slab today and still charge 18% on food.
Do I charge CGST and SGST, or IGST, for a guest from another state?
Always CGST and SGST in equal halves. The place of supply for accommodation is the immovable property itself, so the supply is intra-state no matter where the guest lives or where their GSTIN is registered.
A room sold with meals as one package — how is that taxed?
As a composite supply, taxed once at the accommodation rate on the combined value. Building the package price by taxing the room and the food separately and adding them produces a different, wrong number, and it is the error that shows up most often when a return is reconciled against the folios.
Can I claim input tax credit at 5%?
No. The 5% slab is conditional on not taking credit of the input tax charged on the goods and services used to supply the accommodation. Credit comes with the 18% slab only. That trade-off is the reason the threshold matters commercially and not just administratively.
If you would rather not do this per bill
The slab is attached to the charge type in StayFlint's billing, so nobody at the desk picks a rate and nobody picks the wrong one. The folio, the invoice, the night audit and the return all read from one set of books — see the whole system.
Talk to the people who built it
No call centre and no sales script — you reach the team that writes the software. Tell us your hotel's size and what you run today; we'll tell you honestly whether StayFlint fits.
- A 20-minute call — we look at how you take bookings today.
- We set your rooms, rates and staff up on a trial property.
- You run one real day on it before any money changes hands.