GST levied depends on room tariff, not hotel’s star rating: Government

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New Delhi, July 18 (IANS) The government on Tuesday said that room tariff below Rs 7,500 per day will attract 18 per cent GST, irrespective of the star rating of the hotel.

“Reports have been received expressing doubts whether five-star hotels are liable to pay GST at the rate of 28 per cent irrespective of the declared tariff of a unit of accommodation,” Finance Ministry said here in a statement.

“It is hereby clarified that accommodation in any hotel, including five-star hotels, having a declared tariff of a unit of accommodation of less than Rs 7,500 per unit per day, will attract GST at the rate of 18 per cent,” it said.

Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST, the Ministry noted.

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