For Indian hotels, GST on accommodation is determined by declared tariff per CBIC Circular 47/21/2018-GST:
- Declared tariff under ₹1,000 → 0% GST
- ₹1,000 to ₹7,499 → 5% GST (no input tax credit)
- ₹7,500 and above → 18% GST (with input tax credit)
The slab is set by declared tariff, not the discounted transaction price. Declared tariff includes the room rate plus the meal plan rate multiplied by the number of adults. Many hotels under-declare by using room-rate alone, which moves them into a lower slab and creates audit exposure.
For F&B in a hotel, separate rules apply: in-house restaurant is 5% (no ITC); standalone or banquet is 18% (with ITC).