GSTR-1 and GSTR-3B Filing for Hotels: A Walkthrough

Every Indian hotel registered under GST files two monthly returns: GSTR-1 (outward supplies) and GSTR-3B (summary + tax payment). For most hotels with turnover above ₹5 crore, both are due monthly. Below ₹5 crore, GSTR-1 can be quarterly under the QRMP scheme but GSTR-3B remains monthly.

This walkthrough covers what each return contains, the order to file them in, and the gotchas that trip up first-time filers.

This is general guidance — for your specific filings, consult your CA. Compliance errors can result in late fees, interest, and credit reversal.

Filing calendar

• GSTR-1: Due 11th of the month following the tax period (e.g., April invoices reported by 11th May).
• GSTR-3B: Due 20th of the month following the tax period (e.g., April liability paid by 20th May).
• QRMP scheme (turnover ≤ ₹5 crore): GSTR-1 quarterly (13th of month after quarter end), but GSTR-3B still monthly with self-assessed PMT-06 challan in the first two months of the quarter.

Always check the GST portal for the current calendar — dates have been extended on multiple occasions.

What goes into GSTR-1

GSTR-1 is the detailed invoice-level return for outward supplies. For a hotel, that means:

• Every accommodation invoice issued during the period.
• Every F&B invoice (restaurant, bar, room service).
• Every other ancillary service invoice (laundry, spa, business center, parking).
• Any export/zero-rated supplies (foreign-currency invoices for foreign-flag travelers, where applicable).
• Any inter-state supplies (B2B with GSTIN, B2C above ₹2.5 lakh inter-state).

Key tables in GSTR-1

• Table 4: B2B supplies (where the recipient has a GSTIN). Each invoice listed with GSTIN, invoice number, taxable value, IGST/CGST/SGST.
• Table 5: B2C inter-state supplies > ₹2.5 lakh.
• Table 6: Exports / zero-rated.
• Table 7: B2C supplies (consolidated by tax rate, not invoice-level).
• Table 9: Amendments to prior periods.
• Table 11: Advances received.
• Table 12: HSN-wise summary. For accommodation, HSN 9963.

What goes into GSTR-3B

GSTR-3B is the summary return where you actually pay tax. It does NOT require invoice-level detail.

Key tables in GSTR-3B

• Table 3.1: Outward supplies summary by category (taxable, zero-rated, exempt, non-GST).
• Table 3.2: Inter-state supplies to unregistered persons / composition dealers / UIN holders (state-wise breakup).
• Table 4: Eligible input tax credit (ITC) — broken into "ITC available," "ITC reversed," and "Net ITC available."
• Table 5: Exempt, nil-rated, and non-GST inward supplies.
• Table 6.1: Tax payment — system computes liability from Table 3.1 minus ITC from Table 4.

The recommended filing order

1. Reconcile your books. Run a sales register from your PMS for the period. Verify every invoice has the correct GSTIN (B2B), state code, and HSN.
2. Generate GSTR-1 JSON from your PMS or accounting system. Validate against the offline tool from the GST portal.
3. Upload and file GSTR-1.
4. Wait for GSTR-2B. This is auto-generated by the GST portal from your suppliers' GSTR-1 filings. It tells you which input invoices are eligible for ITC.
5. Match GSTR-2B against your purchase register. Any invoice in your books but missing from GSTR-2B → ITC blocked. Chase the supplier.
6. File GSTR-3B with the matched ITC and the outward liability that flows from your filed GSTR-1.
7. Pay the cash liability. Net of ITC, transfer the balance to the electronic cash ledger and file.

Common gotchas

1. Wrong place-of-supply code

For accommodation, place of supply = location of the property. For inter-state corporate bookings (Bangalore guest at your Mumbai hotel), this matters for IGST vs CGST/SGST classification. Most PMS errors come from defaulting to the booker's state instead of the hotel's state.

2. Mixing rate slabs incorrectly

Use the current Ministry of Finance / CBIC clarification when deciding the accommodation slab. As of this update, accommodation with value of supply up to ₹7,500 per unit per day is 5% without ITC, and accommodation above ₹7,500 is 18% with ITC. The PIB FAQ on the 56th GST Council reforms also clarifies that hotels cannot choose 18% with ITC for units priced at or below ₹7,500.

Example: room ₹6,500 + mandatory CP meal plan ₹600 × 2 adults = package value ₹7,700. Common error: using ₹6,500 alone, leading to the lower slab when the full package value should be reviewed against the ₹7,500 threshold.

3. F&B vs accommodation tax mixing

Restaurant and banquet services need line-level classification. Restaurant service other than at specified premises is commonly listed at 5% with no ITC, while specified-premises restaurant service, outdoor catering, and event packages can fall under different entries. Confusing these creates either underpayment of tax or unnecessary tax burden.

4. Missing TCS reconciliation

OTAs deduct 1% TCS (Tax Collected at Source) on hotel payouts. The hotel must reconcile TCS in Form 27D against actual booking value. Mismatches lead to disallowed credit.

5. ITC on capital goods

Capital goods ITC must be claimed in 60 monthly installments unless the asset is sold within five years (then reversed proportionally). Most hotels miss the installment-tracking requirement.

6. Late-fee structure

GSTR-3B late fee: ₹50/day (₹25 CGST + ₹25 SGST) capped at ₹5,000. GSTR-1 late fee: same structure. Plus 18% interest on tax not paid by the due date.

Tools that help

Manual filing is error-prone. Hotelary's finance module generates GSTR-1 JSON directly from invoice data, with HSN codes, place-of-supply logic, and slab detection automated. Tally and Zoho Books also generate compliant exports if your accountant manages filings outside your PMS.

External references

• GST Portal for the latest calendar, forms, and validation tools.
• CBIC tax information portal for circulars, notifications, and FAQs.
• ICAI publishes a hotel-specific GST guide updated annually.

Filing is mechanical once your data is clean. The hard part is keeping invoice-level data clean in real time, not at month-end. Get the complete India GST guide for the broader regulatory context.

Disclaimer: This guide reflects rules as of April 2026. GST rules change frequently. Always confirm current requirements with a chartered accountant before filing.