New Gst Rate Are Applicable on Hotel Industry w.e.f. 01.10.2019
The GST Council in its 37th meeting decided to lower GST rates on hotel tariff and outdoor catering, giving a boost to the hospitality sector. Hotels with room tariffs of up to Rs 1,000 need not pay any GST. For those who are under the tariffs of Rs 1,001-7,500 will be taxable at 12%, and for those offering rooms at more than Rs 7,500 a night, the levy will be 18%.
The GST Council has also decided to slash the rate on outdoor catering to 5 per cent from 18 per cent. However, no input tax credit (ITC) will be available to them.
The council not only reduced the rates, but also rearrange the slabs. Earlier, room tariffs of Rs 1,001-2,500 attracted a rate of 12%; traffic of Rs 2,500-7,500 attracted an 18% rate, and those costing above Rs 7,500 paid tax at 28%.
“Reduction in tax from the peak rate of 28% to 18% for hotels having tariff of more than Rs 7,500 and from 18% to 12% for hotels having tariff less than Rs 7,500 should give a boost to the tourism industry,”
New Gst Rates are as follows :-
| TYPE OF SERVICES | PARTICULARS | TAX RATE | CONDITIONS |
| Hotel Accomodation | Value of Room Renta) Upto Rs.1,000
b) Rs.1,001 to Rs.7,500 c) Rs.7,501 and above |
0%
12% 18% |
_
_ _ |
| Restaurant Service | a) Restaurant is part of specified premises.b) Restaurant is not part of specified premises. | 18%
5% |
_
No ITC |
| Outdoor Catering | a) Supplied by or at Specified premisesb) Supplied by and at other than specified premises | 18%
5% |
_
No ITC |
| Outdoor Catering with Renting of Premises (Mandap keeper) |
a) Supplied by or at Specified premisesb) Supplied by and at other than specified premises | 18%
5% |
_
No ITC |
Specified premises means the premises providing the hotel accomodation services having declared tariff (i.e. published tariff without any discount) of any unit of accomodation above Rs. 7,500.
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