GST compliance remains one of the biggest headaches for Indian hoteliers. With rates varying by room tariff, service type, and state — and frequent revisions by the GST Council — it's easy to get confused or make costly errors.
This guide covers the latest 2026 GST slab rates applicable to the hotel and hospitality industry, with practical examples so you know exactly what to charge.
Current GST Slab Structure for Hotels (2026)
The GST rate for hotel accommodation is determined by the declared tariff (not the actual transaction value). Here's the updated structure:
- Room tariff up to ₹1,000/night — Exempt (0% GST)
- Room tariff ₹1,001 to ₹7,500/night — 12% GST (6% CGST + 6% SGST)
- Room tariff above ₹7,500/night — 18% GST (9% CGST + 9% SGST)
Restaurant Services Within Hotels
If your hotel has an in-house restaurant, the GST treatment depends on whether you have air conditioning and your hotel's star rating:
- Non-AC restaurants — 5% GST (no input tax credit)
- AC restaurants — 5% GST (no input tax credit)
- Restaurants in hotels with tariff > ₹7,500 — 18% GST (with ITC)
Common Mistakes to Avoid
- Charging GST on the actual rate instead of declared tariff
- Not splitting CGST and SGST on invoices
- Missing the ₹20 lakh threshold for GST registration
- Not maintaining separate bills for accommodation and food
- Incorrect HSN/SAC codes on invoices
How Bedlo Simplifies GST Billing
Bedlo auto-calculates CGST and SGST based on your configured tax rate, generates compliant invoices with your GSTIN, and separates hotel and food bills automatically. No manual calculations, no errors.