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GST Returns for Hotels

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Documents: PMS export, room-night register, F&B sales, banquet contracts, vendor master, and Annexure status.

Fees: Starting from INR 1,999 per month (Exl GST and Govt. Charges) per hotel or premises.

Eligibility: Hotels, resorts, boutique stays, serviced apartments, BnB/homestays, and hospitality groups.

Timeline: GSTR-1 by 11th, GSTR-3B by 20th, Annexure VII/VIII between 1 January and 31 March of preceding FY.

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Hotel GST Compliance at a Glance

📌 TL;DR - GST Returns for Hotels Services at a Glance

Notification 5/2025-CTR effective 1 April 2025 removed declared tariff and introduced specified premises (Clause xxxvi). Post-22 September 2025 (56th GST Council), room up to INR 7,500/day = 5% no ITC; above INR 7,500/day = 18% with ITC. Restaurant in hotel: at specified premises = 18% with ITC (Entry 7(vi)); at non-specified = 5% no ITC (Entry 7(ii)). Specified-premises trigger = any unit above INR 7,500 in preceding FY OR Annexure VII opt-in declaration filed 1 January to 31 March. Banquet/conference = 18% (unchanged). POS = Section 12(3)(b) IGST (location of immovable property). Patron Accounting starts from INR 1,999 per month per hotel.

Hotel GST has undergone the most consequential restructuring of any sector in 2025. Notification 5/2025-Central Tax (Rate) dated 16 January 2025, effective 1 April 2025, removed the declared tariff concept that had governed hotel taxation since GST inception, replaced it with the value-of-supply benchmark, and introduced specified premises as a premises-wise classification under Clause (xxxvi) of the explanations paragraph in Notification 11/2017-CTR. A premises is specified if (a) in the preceding FY any unit of accommodation exceeded INR 7,500 per unit per day, or (b) the supplier filed an Annexure VII opt-in declaration between 1 January and 31 March of the preceding FY, or (c) a new applicant filed a declaration within 15 days of registration acknowledgment.

Then on 22 September 2025, the 56th GST Council Meeting recommendations under GST 2.0 came into force - rooms priced up to INR 7,500 per day moved from 12% with ITC to 5% without ITC, while rooms above INR 7,500 continued at 18% with full ITC. Restaurant services in a hotel now follow the specified-premises status of the hotel - 18% with ITC at specified premises (Entry 7(vi) of Notification 11/2017-CTR) and 5% without ITC at non-specified premises (Entry 7(ii)). Banquet and conference services continue at 18% with full ITC under Heading 9963. The GSTN Advisory dated 4 January 2026 operationalised electronic filing of Annexure VII, VIII, and IX declarations. Patron Accounting LLP runs end-to-end hotel GST compliance starting from INR 1,999 per month per hotel - covering specified premises election, rate-correct invoicing, Rule 42/43 common ITC reversal for mixed-rate operations, banquet structuring, and DRC-01C / ASMT-10 defence.

Content is reviewed quarterly for accuracy.

What Is GST Returns for Hotels?

GST returns for hotels is the monthly compliance workflow for hotels, resorts, and hospitality groups covering classification of each revenue stream into the correct rate slab (room 5% / 18%; restaurant 5% / 18% by specified-premises status; banquet 18%; spa, laundry, business centre 18%; transport 5%/12% by mode), specified-premises election and management (Annexure VII opt-in / Annexure VIII opt-out / Annexure IX new registration), Section 12(3)(b) IGST place-of-supply mapping (location of the hotel premises), Section 17(5)(g) blocked credits, Rule 42/43 common ITC reversal for mixed-rate operations, and full monthly GSTR-1 / GSTR-3B filing.

A complete monthly close also addresses the post-22 September 2025 transition rules, value-of-supply documentation (post-removal of declared tariff), e-invoicing where turnover exceeds INR 5 crore, e-way bill on F&B vendor inward where consignment exceeds INR 50,000, ITC on capital goods construction (the Section 17(5)(c)/(d) plant-or-machinery to plant-and-machinery amendment via Finance Act 2025 - applicable to hotel buildings), and Rule 47A 30-day self-invoice for legal and director RCM. The objective is rate-correct invoicing per stream, clean ITC discipline across specified vs non-specified streams, and zero exposure to specified-premises misclassification demand.

Key Terms for GST Returns for Hotels:

Specified Premises (Clause xxxvi): Notification 11/2017-CTR as amended by Notification 5/2025-CTR - a premises from which the supplier provided accommodation in the preceding FY above INR 7,500 per unit per day, OR for which an opt-in declaration was filed between 1 January and 31 March of the preceding FY, OR for which a new applicant filed a declaration within 15 days of registration acknowledgment.
Value of Supply (Post-1 April 2025): The actual price charged by the hotel for the unit of accommodation. Replaces the earlier declared tariff concept. Inclusive of mandatory charges; excludes discounts shown on invoice and refundable deposits.
Annexure VII (Opt-In): A declaration filed between 1 January and 31 March of the preceding FY to declare a premises as specified for the next FY - even though the value of supply did not exceed INR 7,500. Used to capture 18% with ITC on restaurant service.
Annexure VIII (Opt-Out): A declaration filed to opt out of specified-premises status for the next FY where the entity previously had specified status. Filed in the same 1 January to 31 March window.
Annexure IX (New Registration): A declaration filed within 15 days of obtaining the registration acknowledgment to declare the premises as specified for the FY in which registration is granted.
Restaurant Service Rate Bifurcation: At specified premises = Entry 7(vi) - 18% with ITC. At non-specified premises = Entry 7(ii) - 5% without ITC (treated as exempt-equivalent for common ITC reversal purposes).

Room Slab 5% / 18%

Who Needs This Compliance

Any hospitality business with the following compliance footprint needs ongoing monthly GST support:

Hotels, resorts, business hotels, and luxury properties with rooms above or below INR 7,500 per day
Boutique hotels, heritage hotels, and budget chains with mixed room categories
Hotel chains with multiple properties needing premises-wise specified-status mapping
Serviced apartments and aparthotels with a long-stay and short-stay revenue mix
Bed and breakfast operators, homestays, and small hospitality businesses
Hotels with restaurants - choosing between the 18% specified vs 5% non-specified rate
Hotels with active banquet, conference, and event business
Hotels with spa, salon, laundry, business centre, and transport revenue streams
OYO / Treebo / Airbnb operators with their own GSTIN
Hospitality groups with multi-state operations needing branch-wise rate management
New hotel projects within 15 days of registration acknowledgment (Annexure IX filing)

Statutory Deadlines

GSTR-1 by the 11th of the following month (or 13th for QRMP). GSTR-3B by the 20th (or 22nd / 24th for QRMP). Annexure VII (opt-in) and Annexure VIII (opt-out) electronically on the GST Portal between 1 January and 31 March of the preceding FY. Annexure IX within 15 days of registration acknowledgment for new hotels. Status, once chosen, is locked for the financial year.

Patron Accounting Services

Service	What We Do
Specified-Premises Election Modelling and Annexure Filing	Annual modelling of opt-in vs opt-out economics - 18% restaurant with full ITC vs 5% restaurant without ITC; impact on room ITC at the same premises; net cash impact per package mix; documented decision memo; Annexure VII / VIII / IX filing through the GST Portal in the prescribed window.
Rate-Correct Invoicing across Multiple Streams	PMS / billing configuration for: room rate slab at value of supply (5% no-ITC vs 18% with ITC); restaurant rate by specified-premises status; banquet / conference at 18%; spa, salon, laundry, business centre at 18%; transport at 5% (cab) or 12% (rented cars with operator). Monthly review of slab transitions where rooms cross INR 7,500.
Rule 42/43 Common ITC Reversal for Mixed Operations	Where a hotel has both a 5% no-ITC stream (rooms below INR 7,500 or restaurant at non-specified premises) and an 18% with-ITC stream, common ITC (electricity, security, software, building maintenance, capital goods) requires monthly Rule 42 / 43 proportionate reversal, reported in GSTR-3B Table 4(B)(1).
Banquet / Conference / Event Structuring	Banquet services (renting of premises + food) continue at 18% with full ITC under Heading 9963 - unchanged by GST 2.0. We structure event contracts to capture full ITC on F&B vendor inward, banquet hall electricity / maintenance, audio-visual rentals, and external decorator services.
POS, RCM, and Cross-Border Bookings	Section 12(3)(b) IGST mapping (accommodation = location of immovable property), Section 12(2) IGST for ancillary services to registered corporate clients, RCM on legal services, GTA, director sitting fees, and security under Notification 13/2017-CT(R), and Rule 47A 30-day self-invoice for import of services (foreign OTAs, GDS / channel managers).
Monthly GSTR-1 / GSTR-3B Filing and DRC-01C Defence	Monthly GSTR-1 with rate-wise outward supplies (5% / 18% / exempt), restaurant rate per specified status, banquet and event bookings; GSTR-3B with output tax, Rule 42/43 reversal, RCM payment in cash, and ITC on capital goods (including the post-Finance Act 2025 amendment for hotel building); DRC-01C / ASMT-10 reply within the 7-day window.

Our Process

From onboarding and the specified-premises annual election through the monthly close and GSTR filing to DRC-01C defence and the annual close.

Step 1

Onboarding

We collect GSTIN credentials for each premises, PMS / billing system access, the room category list with current pricing, the F&B menu and contracts, banquet contracts, the vendor master, and the last 12 months of returns. Output: a stream-wise rate matrix per premises in 5 to 7 working days.

PMS access Room categories

Onboarding 01

Step 2

Specified Premises Annual Election

For each premises, model opt-in vs opt-out economics; document the decision; file Annexure VII or VIII through the GST Portal between 1 January and 31 March of the preceding FY; for new properties file Annexure IX within 15 days of registration acknowledgment.

Opt-in vs out Annexure VII/VIII

Election 02

Step 3

Monthly Close

By the 7th of each month, pull GSTR-2B and the PMS export; classify outward streams by rate; identify Rule 42/43 reversal triggers; tag RCM and import-of-services. Output: a monthly close memo.

Classify streams Rule 42/43

Reconcile 03

Step 4

GSTR-1 Filing

Outward supplies by the 11th (or 13th QRMP) with rate-wise tables - the 5% no-ITC stream (room up to INR 7,500 / restaurant at non-specified), the 18% with-ITC stream (room above INR 7,500 / restaurant at specified / banquet / spa), and an HSN summary in Table 12 with separate B2B and B2C.

5% / 18% HSN Table 12

GSTR-1 04

Step 5

GSTR-3B Filing

By the 20th (or 22nd / 24th QRMP) with output tax in Table 3.1(a); Rule 42/43 reversal in Table 4(B)(1); RCM in Table 3.1(d) paid in cash; ITC on capital goods including the hotel building post the Finance Act 2025 amendment (Section 17(5)(c)/(d) plant and machinery).

3.1(a) output 4(B)(1) reversal

GSTR-3B 05

Step 6

DRC-01C and Annual Closure

Reply on auto-mismatches within 7 days; supplier coordination for RCM compliance; voluntary disclosure under Section 73(5) where past-period exposure is found; annual GSTR-9 / 9C with stream-wise reconciliation by 31 December.

DRC-01C reply GSTR-9 / 9C

Annual Close 06

Document Checklist

The GST portal accepts PDF or JPEG uploads. Hotel compliance depends on accurate stream-wise rate and specified-premises data.

GSTIN login credentials for each premises (multi-property groups)
Room category list with current value of supply per category
Preceding FY data showing maximum value of supply per unit per day (for the specified premises trigger)
Annexure VII / VIII / IX filing history (where applicable)
PMS / billing system access for rate audit and reconciliation
Restaurant menu with current rate tagging (5% / 18%)
Banquet / conference contract template
F&B vendor master with GSTIN and supply category
OTA / GDS / channel manager invoice ledger (foreign and domestic)
Past 12 months GSTR-1, GSTR-3B, GSTR-2B
Any prior DRC-01C, ASMT-10, or notice on specified premises / restaurant rate

Common Challenges and How We Resolve Them

Challenge	Impact	How Patron Accounting Solves It
Specified Premises Misclassification	Specified premises is determined per-premises, not per-GSTIN; a chain may have some specified and some non-specified properties, and the department may reclassify a restaurant to 18%.	We document, for each property, the maximum value of supply per unit per day in the preceding FY, the Annexure VII / VIII status, and the rate election trail, defending mis-classification claims with PMS booking data and Annexure acknowledgments.
Post-22 September 2025 Transition - Rooms at 5% No ITC	Rooms up to INR 7,500 moved from 12% with ITC to 5% without ITC, so hotels with in-the-slab room nights now lose proportionate ITC.	We rebuild Rule 42/43 reversal from 22 September 2025 onwards, identify direct attribution where possible (e.g., laundry exclusively for budget rooms), and document common ITC reversal in GSTR-3B Table 4(B)(1).
Hotel Wants 18% Restaurant Despite No Room Above INR 7,500	A hotel where no unit exceeded INR 7,500 in the preceding FY would otherwise be non-specified (restaurant at 5% no-ITC).	We file Annexure VII between 1 January and 31 March to opt in, model the ITC pick-up on F&B raw material, kitchen equipment, and vendor services against 18% on restaurant turnover - for most full-service kitchens, opt-in is net positive.
Banquet Rate Confusion - Restaurant or Accommodation?	Banquet services may be wrongly split into food and rent invoices, losing the 18% composite efficiency.	Banquet (renting of premises + food for events) is Heading 9963 at 18% with full ITC; where a single composite invoice covers hall + F&B + audio-visual + decorations, the whole composite is at 18% with the hall renting as the principal supply. We restructure invoices to capture this clearly.

Patron Accounting Fees

Fee Component	Amount
Monthly GST Returns - Single Hotel / Premises	Starting from INR 1,999 per month (Exl GST and Govt. Charges)
Monthly Returns + Specified Premises Setup + Rule 42/43	Starting from INR 3,999 per month (Exl GST and Govt. Charges)
Specified Premises Annual Election Modelling	Quote on call - per premises
Multi-Property / Multi-State Hospitality Group	Quote on call - per GSTIN / premises
Banquet / Event Restructuring + Contract Templates	Quote on call - per business
DRC-01C / ASMT-10 Reply on Hotel Rate / Specified Premises	Quote on call - within the 7-day window
Government Fees on the GST Portal	NIL on filing and on Annexure declarations; statutory tax and RCM are paid on actuals

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free GST Returns for Hotels consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Time Taken

Stage	Estimated Timeline
Onboarding (credentials, premises mapping)	5 to 7 days
Specified premises annual election modelling	7 to 14 days (between 1 January and 15 March)
Annexure VII / VIII filing	Between 1 January and 31 March of preceding FY
Annexure IX (new registration)	Within 15 days of registration acknowledgment
Monthly close and reconciliation	7th to 12th of each month
GSTR-1 filing	By 11th (monthly) or 13th (QRMP)
GSTR-3B filing	By 20th (monthly) or 22nd / 24th (QRMP)
Annual GSTR-9 / 9C	By 31 December of the following FY

Key deadlines: Annexure VII / VIII between 1 January and 31 March of the preceding FY (Annexure IX within 15 days of registration), GSTR-1 by the 11th (or 13th for QRMP), GSTR-3B by the 20th (or 22nd/24th for QRMP), and annual GSTR-9 by 31 December.

Key Benefits

Why Engage a Professional

Specified Premises Modelled

Lowest-tax position chosen per property each year.

Annexure Filed in Window

Opt-in / opt-out window never missed.

Post 22 Sep 2025 Transition Handled

Rule 42/43 reversal cleanly built into the monthly close.

Banquet Captures Full ITC

18% composite with no margin leakage.

Building ITC Captured

Section 17(5)(c)/(d) post Finance Act 2025 used where eligible.

Lower Long-Term Cost

One INR 1,999 per month engagement avoids specified-premises or rate mismatch demand on a single audited year.

Trusted by Businesses Across India

10,000+ Businesses Served | 4.9 Google Rating | 50,000+ Documents Filed | 15+ Years of CA / CS Practice

Trusted by Hyundai, Asian Paints, Bridgestone, and a growing portfolio of hotels, resorts, boutique stays, and hospitality groups across Pune, Mumbai, Delhi, and Gurugram.

Outcome proof: a Mumbai-based boutique hotel group with three properties (two specified premises with rooms above INR 7,500; one mid-scale with rooms up to INR 7,500) realised an additional INR 38 lakh annual ITC by opting the mid-scale property into specified-premises via Annexure VII - bringing restaurant turnover to 18% with full F&B and kitchen-equipment ITC.

With offices in Pune, Mumbai, Delhi and Gurugram, Patron Accounting serves businesses across India both in-person and remotely. See our GST returns support in Mumbai for local coordination.

DIY vs Patron Accounting Hotel Compliance

Parameter	DIY / Internal Team	Patron Accounting Compliance
Specified premises election	Default to status quo - missed Annexure window	Annual modelling + Annexure VII / VIII / IX filed in window
Post 22 Sep 2025 transition	Continued 12% / no Rule 42 reversal - mismatch exposure	5% rate with Rule 42/43 reversal cleanly built in
Restaurant rate	Sometimes confused 18% vs 5%	Specified-premises status drives rate; consistent invoicing
Banquet rate	Often split into food and rent invoices - sub-optimal	Single composite at 18% with full ITC
Building ITC post Finance Act 2025	Not claimed	Section 17(5)(c)/(d) plant-and-machinery amendment used
Annexure window 1 Jan to 31 Mar	Frequently missed	Calendar-driven filing in advance
Cost (typical)	Hidden - specified premises demand, rate mismatch, lost ITC	Starting from INR 1,999 per month
Audit / board comfort	Low	High - signed monthly compliance pack

Related Patron Services

Hotel compliance connects with other GST workstreams. Patron also handles:

GST Services - the complete GST services hub covering registration, returns, ITC, refunds, notices and audits.
GST Returns - core monthly GSTR-1 / GSTR-3B compliance for non-hospitality flows.
GST Notice - ASMT-10, DRC-01A, and DRC-01 representation on specified premises and rate mismatch.
GST Annual Returns - GSTR-9 / GSTR-9C with stream-wise rate reconciliation.

We also offer GST Place of Supply Determination (Section 12(3)(b) IGST for accommodation and ancillary services), GST Classification and HSN/SAC Advisory (SAC 9963 accommodation and food services), GST Reverse Charge Mechanism (RCM) Compliance (RCM on legal, GTA, director, security, and import of services), and GST Returns for Travel and Logistics (companion sector compliance for hotels with tour operator tie-ups), as part of the same engagement.

Legal and Compliance Framework

Governing Act and Rules: Central Goods and Services Tax Act, 2017 and Integrated Goods and Services Tax Act, 2017, read with the CGST Rules, 2017 and the rate notifications under Heading 9963.

Element	Reference
Charging section	Section 9 CGST + Section 5 IGST Act
Rate notification - services	Notification 11/2017-CTR dated 28 June 2017
Heading	Heading 9963 - Accommodation, food and beverage services
Major restructuring	Notification 5/2025-CTR dated 16 January 2025 effective 1 April 2025
Specified premises definition	Clause (xxxvi) explanations under Notification 11/2017-CTR (as amended)
Declared tariff concept	Removed effective 1 April 2025
Value of supply	Section 15 CGST Act - actual price charged
Room up to INR 7,500/day	Post 22 September 2025 - 5% without ITC
Room above INR 7,500/day	Entry 7(vi) Notification 11/2017-CTR - 18% with ITC
Restaurant at specified premises	Entry 7(vi) - 18% with ITC
Restaurant at non-specified premises	Entry 7(ii) - 5% without ITC
Annexure VII (opt-in)	1 January to 31 March of preceding FY
Annexure VIII (opt-out)	1 January to 31 March of preceding FY
Annexure IX (new registration)	Within 15 days of registration acknowledgment
GSTN portal operationalisation	Advisory dated 4 January 2026
Banquet / conference services	Heading 9963 - 18% with ITC (unchanged under GST 2.0)
POS for accommodation	Section 12(3)(b) IGST - location of immovable property
ITC eligibility	Section 16 CGST Act
Blocked credits - food and beverage personal	Section 17(5)(b) CGST
Blocked credits - building (construction)	Section 17(5)(c) / (d) - post Finance Act 2025 amendment plant or machinery to plant and machinery
Common ITC reversal	Section 17(2) read with Rule 42 / 43
RCM on legal services	Notification 13/2017-CT(R) Entry 2
RCM on GTA	Notification 13/2017-CT(R) Entry 1
Self-invoice 30-day rule	Rule 47A effective 1 November 2024 (Notification 20/2024-CT)
Demand - non fraud	Section 73 CGST - 10% penalty or INR 10,000; 3-year limit
Demand - fraud	Section 74 CGST - 100% penalty; 5-year extended period
Refund time limit	Section 54(1) - 2 years from the relevant date

Authoritative references: CBIC CGST notifications (5/2025 and 11/2017-CTR), Notification 11/2017-CTR (Service Rates), and the 56th GST Council recommendations.

What is the GST rate on hotel rooms in 2026?

Post 22 September 2025 (56th GST Council Meeting recommendations under GST 2.0), hotel rooms with a value of supply up to INR 7,500 per unit per day attract 5% GST without input tax credit. Rooms with a value of supply above INR 7,500 per unit per day attract 18% GST with full input tax credit. The earlier 12% rate slab has been removed. The threshold uses the actual value of supply, not the declared tariff (the declared tariff concept was removed by Notification 5/2025-CTR effective 1 April 2025).

What is "specified premises" under GST for hotels?

Specified premises is a premises-wise classification introduced via Notification 5/2025-Central Tax (Rate) dated 16 January 2025, inserting Clause (xxxvi) in Notification 11/2017-CTR. A premises is specified if (a) the supplier provided hotel accommodation in the preceding FY at a value of supply above INR 7,500 per unit per day for any unit, OR (b) the supplier filed an Annexure VII opt-in declaration between 1 January and 31 March of the preceding FY, OR (c) a new applicant filed Annexure IX within 15 days of registration acknowledgment.

What is the restaurant rate inside a hotel?

Under the post-1 April 2025 framework, restaurant service at a specified premises attracts 18% GST with full input tax credit under Entry 7(vi) of Notification 11/2017-CTR. Restaurant service at a non-specified premises attracts 5% GST without input tax credit under Entry 7(ii). The status follows the premises classification, not the entity GSTIN, so multi-property hotel groups can have different restaurant rates at different properties.

When can a hotel file Annexure VII to opt for specified premises?

Annexure VII is filed by a registered hotel between 1 January and 31 March of the preceding FY to declare a premises as specified premises for the next FY - even though the value of supply in the preceding FY did not exceed INR 7,500 per unit per day. Once filed and accepted on the GST Portal (operationalised via GSTN Advisory dated 4 January 2026), the status is locked for the FY. Annexure VIII is the corresponding opt-out for entities currently in specified status.

Are banquet and conference services taxed differently from accommodation?

Yes. Banquet services (renting of premises along with food service for events) and conference / convention services attract 18% GST with full input tax credit under Heading 9963. This rate was not changed by the GST 2.0 reforms effective 22 September 2025. Banquet is distinct from restaurant service (in-house dining) and accommodation (room let-out). Where a single composite invoice is issued for a wedding or corporate event covering hall + F&B + audio-visual, the whole composite is at 18% with the hall renting as principal supply.

What is the place of supply for hotel accommodation?

Per Section 12(3)(b) of the IGST Act, the place of supply for services in relation to immovable property - including lodging accommodation by a hotel, inn, guest house, club, or campsite - is the location of the immovable property itself. This means hotel accommodation is always taxed in the State where the hotel is located, regardless of the guest's home State, GSTIN, or where the booking was made. Always CGST + SGST for the hotel-State, never IGST.

Can a hotel claim ITC on building construction or renovation after Finance Act 2025?

The Finance Act 2025 amended Section 17(5)(c) and (d) of the CGST Act, retrospectively changing the phrase plant or machinery to plant and machinery with effect from 1 July 2017 - nullifying the Supreme Court ruling in Safari Retreats. The amended position is that ITC on building construction is generally blocked, except where the construction relates to plant and machinery as specifically defined. For hotels, the practical position is that ITC on civil construction is blocked, but specific equipment and machinery within the building remain eligible.

What is the cost of monthly GST returns for hotels at Patron Accounting?

Starting from INR 1,999 per month (Exclusive of GST and government charges) for single-hotel / single-premises basic compliance. Monthly returns plus specified-premises setup plus Rule 42/43 package starts from INR 3,999 per month. Specified-premises annual election modelling, multi-property / multi-state hospitality group compliance, banquet / event restructuring, and DRC-01C reply are quoted separately based on scope.

Hotel ka GST rate kya hai abhi 2026 me?

22 September 2025 ke baad, INR 7,500 per day tak ke room par 5% GST hai bina ITC ke. INR 7,500 se zyada per day room par 18% GST hai full ITC ke saath. Restaurant ka rate - agar specified premises me hai toh 18% with ITC, agar non-specified me hai toh 5% without ITC. Banquet / conference 18% with ITC hai (no change). Specified premises ka decision Annexure VII (opt-in) ya VIII (opt-out) se 1 January se 31 March ke beech preceding FY me karna hota hai.

Quick Answers

Room rate up to INR 7,500/day? 5% without ITC (post 22 September 2025).
Room rate above INR 7,500/day? 18% with ITC under Entry 7(vi).
Restaurant rate at specified premises? 18% with ITC under Entry 7(vi).
Restaurant rate at non-specified premises? 5% without ITC under Entry 7(ii).
Banquet rate? 18% with ITC under Heading 9963 (unchanged by GST 2.0).
Annexure VII window? 1 January to 31 March of the preceding FY for opt-in.
POS for hotel accommodation? Section 12(3)(b) IGST - location of immovable property.

Why Move Now on Hotel GST

The Annexure VII / VIII opt-in / opt-out window is 1 January to 31 March of each preceding FY - missing it locks the hotel in the default status (specified or non-specified based on preceding-FY value of supply) for the entire next FY.

The post-22 September 2025 rate transition still has many hotels mis-applying Rule 42/43 reversal on rooms now at 5% no-ITC, and banquet contracts often split into food + rent invoices losing the 18% composite efficiency. Voluntary disclosure under Section 73(5) before an SCN waives penalty.

Patron Accounting starts from INR 1,999 per month - the smallest investment a hotel can make against the typical specified-premises or rate mismatch demand on a single audited year.

The Most Restructured Services Sector

Hotel GST is now the most restructured services sector in the GST regime. Notification 5/2025-CTR dated 16 January 2025 (effective 1 April 2025) replaced declared tariff with value of supply and introduced specified premises as the central premises-wise classification. The 56th GST Council Meeting effective 22 September 2025 restructured the room slabs - 5% no-ITC up to INR 7,500 per day; 18% with ITC above.

Restaurant service follows the specified-premises status, banquet and conference services are unchanged at 18% with ITC, and Annexure VII / VIII / IX (operationalised via GSTN Advisory 4 January 2026) governs the annual election. Section 12(3)(b) IGST places accommodation in the hotel-State; Section 17(5)(c)/(d) post the Finance Act 2025 governs construction ITC. Patron Accounting LLP, with CA and CS professionals practising for 15+ years across Pune, Mumbai, Delhi, and Gurugram, runs end-to-end hotel GST compliance starting from INR 1,999 per month per hotel / premises.

Pair it with core GST Returns, your annual GST Annual Returns, and expert GST Notice representation.

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Hotel GST Support Across India

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves hotels, resorts, and hospitality groups across India - both in-person and remotely.

Hotel GST Returns Support by City

Monthly specified-premises management, room slab and restaurant rate, banquet structuring, on-the-ground and remote

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End-to-end support across the GST compliance stack

Content Created: 27 May 2026 | Last Updated: | Next Review: 1 September 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed quarterly (Tier 1 cadence) and on any amendment to Notification 11/2017-CTR Heading 9963, an Annexure VII/VIII/IX format or window change, a new CBIC circular on specified premises, or a GST Council rate change on accommodation, restaurant, or banquet.

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