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Hospitality Accounting Services for Hotels and Restaurants in India

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Hotel GST Compliance: Updated 5% and 18% rate structure effective September 2025 with Specified Premises classification advisory

Restaurant Accounting: Swiggy, Zomato, and Dineout TCS reconciliation, GSTR filing, and aggregator TDS management

OTA Reconciliation: MakeMyTrip, Booking.com, Goibibo, Agoda - multi-channel commission tracking and settlement matching

F and B Cost Control: Monthly food cost percentage, recipe costing, wastage tracking, and department-wise P and L reporting

200+ hotels and restaurants served | 4.9 star rating | Pan-India service across metro, Tier 2, and Tier 3 cities

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Real Stories from Real People

Hear how teams across industries use Patron to save time, cut costs, & stay in control.

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“
Our hotel has rooms in both the 5% and 18% GST slabs. The monthly ITC reversal calculation under Rules 42-43 was completely beyond us. Patron Accounting handles it perfectly every month and we have never had a GST notice since.
HO
Hotel Owner
Boutique Hotel, Pune
★★★★★
2 months ago
“
We are listed on Swiggy, Zomato, and Dineout, and also take direct orders. Reconciling TCS across platforms was a mess until we hired Patron Accounting. Now our GSTR-3B matches perfectly every month.
RO
Restaurant Owner
Multi-outlet Chain, Mumbai
★★★★★
1 month ago
“
Managing four OTA channels and Booking.com was creating constant discrepancies in our accounts. Patron Accounting's OTA reconciliation service reconciles everything within days of each settlement.
RS
Resort Manager
Beach Resort, Goa
★★★★★
3 months ago
“
As a cloud kitchen on three delivery platforms, keeping track of TCS, commissions, and net payouts was impossible in-house. Patron's team handles everything and our food cost tracking has improved our margins by 4%.
CK
Naveen Reddy
Cloud Kitchen Owner, Hyderabad
★★★★★
4 months ago
“
The Specified Premises classification change caught us off guard. Patron Accounting explained the implications, filed our declaration on time, and updated our restaurant billing to 18% with ITC. Saved us from a major compliance gap.
GM
Vivek Malhotra
General Manager, Heritage Hotel Delhi
★★★★★
5 months ago

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Hospitality Accounting Services - Overview

📌 TL;DR - Hospitality Accounting Services at a Glance

Hotels and restaurants in India face multi-slab GST (5% and 18%), Specified Premises classification, OTA commission reconciliation, Swiggy/Zomato TCS, F and B cost benchmarking, and complex payroll. Patron Accounting provides specialist CA services from Rs 3,499 per month.

India's hospitality sector operates under one of the most complex GST frameworks in any industry - with multiple rate slabs, the new 'Specified Premises' classification, OTA commission structures, food cost benchmarks, and occupancy-driven revenue accounting that demand specialist CA expertise.

Whether you run a boutique hotel, a restaurant chain, a cloud kitchen, or a resort, Patron Accounting LLP delivers end-to-end hospitality accounting built around the unique financial requirements of your business - from daily revenue reconciliation to annual ITR filing.

Content is reviewed quarterly for accuracy.

What is Hospitality Accounting?

Hospitality accounting is the specialised practice of recording, tracking, and analysing financial transactions for hotels, restaurants, resorts, banquet halls, and food and beverage businesses.

Unlike general business accounting, hospitality accounting must handle multiple revenue streams (room revenue, F and B, spa, events), dynamic pricing models, OTA channel reconciliation, food cost management, labour cost optimisation, advance deposit accounting, and India's multi-slab GST structure that changed significantly in 2025.

For Indian hospitality businesses, professional accounting covers five core areas: GST compliance (different rates for rooms, restaurants, spa), revenue reconciliation (OTA settlements, POS, walk-ins), F and B cost control (25%-35% benchmark), payroll and labour cost management, and ITR filing with TDS compliance.

Key Terms for Hospitality Accounting:

  • Specified Premises: Hotel where any room was sold above Rs 7,500/night in the previous financial year - determines restaurant GST rate (5% or 18%)
  • OTA Commission: 15%-25% fee charged by MakeMyTrip, Booking.com, Goibibo on room revenue - must be reconciled monthly
  • TCS under Section 52: 1% Tax Collected at Source by Swiggy, Zomato, and OTAs on supplier payments under CGST Act
  • F and B Cost Percentage: (Opening Stock + Purchases - Closing Stock) / Revenue x 100 - industry benchmark 25%-35%
  • ITC Reversal (Rules 42-43): Monthly proportionate Input Tax Credit reversal for hotels with both 5% and 18% room categories
  • Section 194O TDS: 0.1% TDS by Swiggy/Zomato on restaurant payments exceeding Rs 30 lakh/year
GST Hospitality Accounting
Sector-Specialist Hotels and Restaurants Expert

Who Needs Hospitality Accounting Services in India

Any business in India's hospitality and food service sector needs specialised accounting support:

  • Hotels - budget hotels, mid-scale properties, luxury hotels, resorts, and boutique accommodations
  • Restaurants - standalone restaurants, cloud kitchens, QSRs, fine dining, and multi-outlet chains
  • Banquet halls and event venues - managing advance deposits, catering billing, and event-wise profitability
  • Food delivery businesses - cloud kitchens listed on Swiggy, Zomato, and Dunzo
  • Cafes, bakeries, and casual dining establishments with Swiggy or Zomato presence
  • Hotel chains and franchisees requiring consolidated multi-property reporting
  • Resort and spa operators with multiple taxable services at different GST rates

GST Compliance for Hotels - Updated 2025 Rates and Specified Premises

ServiceWhat We Do
Hotel Rooms up to Rs 7,500/night5% GST without ITC (reduced from 12% - effective Sept 22, 2025 per Notification No. 15/2025-CT(Rate))
Hotel Rooms above Rs 7,500/night18% GST with full ITC (unchanged)
Restaurant in Non-Specified Premises5% GST without ITC (room tariff below Rs 7,500)
Restaurant in Specified Premises18% GST with full ITC (room tariff above Rs 7,500 in previous year) per Notification No. 5/2025-CT(Rate)
Standalone Restaurant (outside hotel)5% GST without ITC
Spa, Health Club, Beauty Services in Hotels5% GST without ITC (effective Sept 22, 2025 - replaced earlier 12%)
Aerated Drinks and Mocktails (served as F and B)18% GST (distinct from aerated beverages sold as goods at 40%)
Mixed Hotels (5% + 18% rooms)Monthly proportionate ITC reversal under Section 17 and Rules 42-43, CGST Rules
Our Process

Our 8-Step Hospitality Accounting Process

From onboarding and revenue integration through to ITR filing, our structured process ensures complete GST, OTA, F and B, and income tax compliance for your hotel or restaurant.

Step 1

Onboarding

Share PMS access, POS reports, OTA credentials, GST login, and bank statements. We review your property type, GST classification, and current compliance status.

PMS and POS access shared GST status reviewed
Onboarded 01
Step 2

Revenue Integration

We pull data from all booking channels, payment gateways, and daily F and B POS reports into a unified accounting system.

Multi-channel data pulled Revenue streams mapped
+
Integrated 02
Step 3

Daily/Weekly Reconciliation

Revenue reconciliation, OTA commission tracking, and bank statement matching. Early detection of discrepancies prevents revenue leakage.

OTA settlements matched Bank reconciled
Reconciled 03
Step 4

Monthly GST Filing

GSTR-1 and GSTR-3B with full TCS reconciliation from Swiggy, Zomato, and OTAs, plus ITC computation for Specified Premises hotels.

GSTR-1 and 3B filed TCS credits claimed
GST
GST Filed 04
Step 5

F and B Cost Report

Monthly food cost percentage, wastage report, recipe costing, and department-wise P and L for kitchen, bar, banquet, and delivery.

Food cost tracked Wastage identified
Cost Controlled 05
Step 6

Financial Reporting

P and L, Balance Sheet, and Cash Flow Statement delivered by 10th of every month with channel-wise and department-wise breakdowns.

P and L by 10th Department-wise reporting
Reports Ready 06
Step 7

Payroll Processing

Monthly payroll with PF, ESI, and professional tax for full-time, part-time, and contract hospitality staff. Tip income accounting included.

Payroll processed PF/ESI filed
Payroll Done 07
Step 8

ITR Filing

Annual income tax return with all deductions and TDS credits claimed optimally. OTA, Swiggy, and Zomato TDS reconciliation with Form 26AS.

ITR filed with all credits TDS fully reconciled
ITR Complete 08

Hospitality Bookkeeping and F and B Cost Control

Daily Revenue Reconciliation

We reconcile your daily physical occupancy or restaurant covers against PMS or POS data, OTA bookings, and cash collections. Revenue from walk-ins, direct bookings, OTAs, and restaurant service must match bank deposits and payment gateway settlements every day.

F and B Cost Control

  • Monthly food cost percentage calculation: (Opening Stock + Purchases - Closing Stock) / Revenue x 100
  • Recipe costing and menu contribution margin analysis per dish or category
  • Wastage tracking and spoilage accounting to identify leakage points
  • Vendor payment reconciliation and accounts payable management
  • Stock audit support and inventory variance analysis
  • Department-wise P and L: kitchen, bar, banquet, and delivery tracked separately
  • COGS calculation for cloud kitchens and standalone restaurants filing ITR

OTA Commission Reconciliation

  • Reconciling OTA settlements against PMS booking data across MakeMyTrip, Booking.com, Goibibo, Agoda
  • Identifying discrepancies in commission charges, cancellation deductions, and promotional adjustments
  • Tracking GST on OTA commissions - OTAs collect TCS at 1% which must be reconciled with GSTR-2B
  • Monitoring ADR, RevPAR, and channel-wise contribution

Payroll and Labour Cost Accounting

Labour costs typically represent 30%-40% of total hospitality revenue. We manage payroll for full-time, part-time, and contract workers, handling PF, ESI, professional tax, and TDS deductions. Section 194T TDS at 10% on partner remuneration in LLP-structured hospitality businesses is also managed.

Key Accounting Challenges for Hotels and Restaurants in India

ChallengeImpactHow Patron Accounting Solves It
Multi-slab GST structureRooms, restaurants, spa, and banquets all attract different rates requiring precise billingExpert rate mapping per Notification No. 15/2025 and 5/2025 with automated billing verification
Specified Premises classificationHotels must determine and declare status annually, impacting restaurant GST for the full yearAnnual classification advisory and pre-year declaration filing before March 31
ITC reversal for mixed-category hotelsBudget (5%) and premium (18%) rooms require monthly proportionate ITC calculationMonthly ITC computation under Section 17 and Rules 42-43, CGST Rules
OTA reconciliation across platformsMultiple settlement cycles, commission rates, and TCS deductions create discrepanciesMulti-channel reconciliation with single monthly revenue report by channel
Swiggy/Zomato TCS reconciliation1% TCS on food delivery sales must be matched with GSTR-2B monthlyAutomated TCS reconciliation and GSTR-3B credit claim
F and B cost tracking across outletsMultiple kitchens, bars, and dining outlets need separate trackingDepartment-wise P and L with monthly food cost reports and wastage analysis

Hospitality Accounting - Fees and Pricing 2026

Fee ComponentAmount
Patron Accounting Professional FeesStarting from INR 3,999 (Exl GST and Govt. Charges)
Starter - RestaurantRs 3,499/month (bookkeeping + GSTR-1 + GSTR-3B + TCS reconciliation, up to 2 aggregators)
Growth - HotelRs 6,999/month (Starter + OTA reconciliation up to 4 channels + F and B cost report + P and L)
Scale - Hotel ChainRs 12,999/month (Growth + multi-property reporting + payroll + GSTR-9 + advance tax + dedicated CA)
EnterpriseCustom pricing (all returns, audit, multi-entity consolidation, transfer pricing, MIS dashboards)

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 Hospitality Accounting consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Hospitality Compliance Calendar 2026

StageEstimated Timeline
10th of next monthGSTR-8 (TCS filing by Swiggy, Zomato, MakeMyTrip)
11th of next monthGSTR-1 (monthly outward supply return)
20th of next monthGSTR-3B with GST payment and TCS credit claim
7th of next monthTDS deposit for operators deducting TDS on staff, rent, contractors
15 June (annual)Advance tax - 15% of estimated annual liability
31 July (annual)ITR filing (non-audit cases)
31 December (annual)GSTR-9 and GSTR-9C (turnover above Rs 2 crore)
31 March (annual)Specified Premises declaration (if changing status for next FY)

Important: GSTR-1 and GSTR-3B have strict monthly deadlines. Late GSTR-1 attracts Rs 50/day (CGST + SGST); late GSTR-3B attracts 18% per annum interest on tax due. Swiggy/Zomato TCS must be reconciled monthly to avoid credit leakage. Patron Accounting manages all filing calendars with advance reminders.

Key Benefits

Why Choose Patron Accounting for Hotels and Restaurants

GST Rate Expertise

Fully updated on September 2025 rate changes - 5% vs 18%, Specified Premises classification, ITC reversal computations.

OTA Reconciliation

Multi-channel reconciliation across MakeMyTrip, Booking.com, Goibibo, Agoda, and direct bookings with TCS tracking.

F and B Cost Control

Monthly food cost reports, recipe costing, inventory variance analysis, and department-wise P and L for kitchen, bar, banquet.

Aggregator Compliance

Swiggy, Zomato TCS reconciliation and Section 194O TDS credit management - zero credit leakage guarantee.

Technology-Enabled

Integration with IDS, Opera, Zoho Books, TallyPrime, and popular POS systems for seamless data flow.

Dedicated CA for Your Property

Assigned Chartered Accountant for your hotel or restaurant, available for calls and consultations. Pan-India coverage.

What Our Hospitality Clients Say

200+ hotels and restaurants served | 4.9 star rating | Pan-India service | Sector-specialist CA team with hospitality GST, OTA, and F and B expertise

Restaurant GST Rates - Standalone vs Specified Premises Hotels

Restaurant TypeGST RateITC Allowed
Standalone restaurant (not in hotel)5%Not Allowed
Restaurant in non-Specified Premises hotel (rooms below Rs 7,500)5%Not Allowed
Restaurant in Specified Premises hotel (rooms above Rs 7,500)18%Full ITC
Composition Scheme restaurant (turnover below Rs 1.5 crore)5% flatNot Allowed (quarterly CMP-08)
Cloud kitchen on Swiggy/Zomato5%Not Allowed (+ 1% TCS by aggregator)

Related Services for Hospitality Businesses

Patron Accounting also provides these complementary services for hospitality businesses:

Legal Framework for Hospitality Accounting in India

Law / NotificationKey ProvisionImpact on Hospitality Accounting
Notification No. 15/2025-CT(Rate)Hotel room GST: 5% for rooms up to Rs 7,500/night; 18% above Rs 7,500 (effective Sept 22, 2025)Rate classification and billing system update
Notification No. 5/2025-CT(Rate)Specified Premises classification and restaurant GST rules (effective April 1, 2025)Annual classification declaration and restaurant rate determination
CGST Act 2017, Section 52TCS at 1% collected by OTAs and food delivery aggregators on supplier paymentsMonthly TCS reconciliation with GSTR-2B
CGST Act 2017, Section 17 and Rules 42-43ITC reversal for hotels with mixed-rate room categoriesMonthly proportionate ITC computation
CGST Act 2017, Section 15GST on actual transaction value (declared tariff concept removed)Billing based on price paid by guest
Income Tax Act 1961, Section 194OTDS by Swiggy/Zomato at 0.1% on payments above Rs 30 lakh/yearAnnual TDS credit reconciliation via Form 26AS
Income Tax Act 1961, Section 44ABTax audit for hospitality businesses with turnover above Rs 1 croreMandatory audit and Form 3CD filing

Frequently Asked Questions - Hospitality Accounting

Get answers about new hotel GST rates, Specified Premises classification, Swiggy/Zomato TCS, OTA reconciliation, ITC reversal, and restaurant compliance in India.

Quick Answers

What is hospitality accounting?
Hospitality accounting is specialised financial management for hotels, restaurants, resorts, and food businesses covering GST compliance (5%/18% rates), OTA reconciliation, F and B cost control, payroll, and ITR filing.

Is GST registration mandatory for cloud kitchens on Swiggy/Zomato?
Yes. Restaurants listed on ecommerce platforms like Swiggy or Zomato must register for GST regardless of turnover under ecommerce operator rules in the CGST Act.

What is the F and B cost benchmark for Indian restaurants?
Industry benchmark for F and B cost is 25%-35% of revenue. Patron Accounting tracks this monthly using: F and B Cost % = (Opening Stock + Purchases - Closing Stock) / Revenue x 100.

Income Tax and ITR Filing for Hospitality Businesses

Income tax compliance for hospitality businesses involves careful management of business income, allowable deductions, TDS credits, and advance tax. Patron Accounting handles:

  • ITR-3 for proprietors running hotels, restaurants, or resorts
  • ITR-5 for LLPs and partnership firms in hospitality
  • ITR-6 for Private Limited or Limited Liability companies
  • Presumptive taxation under Section 44AD for eligible restaurants below Rs 3 crore turnover
  • Tax audit under Section 44AB for businesses exceeding Rs 1 crore threshold
  • Advance tax planning and quarterly deposits (June 15, September 15, December 15, March 15)
  • Reconciliation of all TDS deducted by OTAs, Swiggy, Zomato with Form 26AS
  • Deduction claims for renovation costs, equipment depreciation, staff training, and F and B expenses

File your hospitality ITR correctly - Call +91 945 945 6700 or WhatsApp us for a free assessment.

Start Your Hotel or Restaurant Compliance Today

India's hospitality sector demands specialist accounting expertise - from multi-slab GST (5% and 18%), Specified Premises classification, and monthly ITC reversal to OTA commission reconciliation, Swiggy/Zomato TCS, F and B cost benchmarking, and complex payroll. Getting any of these wrong means GST notices, TDS defaults, and revenue leakage.

Patron Accounting LLP provides end-to-end hospitality accounting built around the unique financial requirements of hotels, restaurants, resorts, cloud kitchens, and food businesses. Our sector-specialist CA team handles everything from daily revenue reconciliation to annual ITR filing - so you can focus on running your property.

200+ hotels and restaurants served | 4.9 star rating | Pan-India service | Starting from Rs 3,499/month

Book a Free Consultation - No Obligation.

Hospitality Accounting Services Across India

Patron Accounting provides hospitality accounting, hotel GST compliance, and restaurant bookkeeping services across major Indian cities.

Pune
Maharashtra
Mumbai
Maharashtra
Delhi
NCR
Gurugram
Haryana
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Content Created: 15 January 2024  |  Last Updated:  |  Next Review: September 2026  |  Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed bi-annually or when GST Council changes hospitality rates or ITC rules. Next review: September 2026. Key notifications: No. 15/2025-CT(Rate), No. 5/2025-CT(Rate).

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