GST Invoicing Rules for Hotels in India: A Simple 2026 Guide
Short answer: For Indian hotels, GST on a room is set by its tariff — 5% for rooms up to ₹7,500 a night and 18% above ₹7,500 (effective 22 September 2025). A compliant invoice must show your GSTIN, the guest's details, the taxable amount, and CGST and SGST split out separately. Here is what every independent hotel needs to get right.
This article is general information, not tax advice. GST rules change — confirm the current rates and your obligations with a qualified chartered accountant.
Hotel room GST rates (2026)
GST on hotel accommodation is based on the room tariff, not the hotel's star rating:
| Room tariff per night | GST rate | Input Tax Credit |
|---|---|---|
| Up to ₹7,500 | 5% | Not available |
| Above ₹7,500 | 18% | Available |
This structure took effect on 22 September 2025, when rooms up to ₹7,500 moved from 12% to 5%. Very low tariffs may be treated differently, so check the latest thresholds with your accountant.
What a compliant hotel GST invoice must show
A valid tax invoice is more than a printed bill. It should include:
- Your hotel's legal name, address and GSTIN
- A unique, sequential invoice number and the date
- The guest's name (and their GSTIN, if they want to claim input credit)
- A clear description of the stay (room nights, dates)
- The taxable value before tax
- The GST rate applied
- CGST and SGST shown separately (or IGST for inter‑state corporate billing)
Getting these fields right matters: corporate guests need a proper GST invoice to claim input tax credit, and incomplete invoices are a common cause of disputes.
Why CGST and SGST are split
For a guest staying within your state, GST is collected as two equal halves — CGST (central) and SGST (state). A 5% rate, for example, appears as 2.5% CGST + 2.5% SGST. For inter‑state corporate bookings, it is charged as a single IGST line instead. Your invoice should display these separately so the numbers are transparent and claimable.
Restaurant and other services
Room and food are taxed separately. In hotels whose rooms stay at or below ₹7,500, the in‑house restaurant is generally 5% (without input credit). In "specified premises" — where any room crossed ₹7,500 in the previous year — restaurant service is 18% (with input credit). Keep these on separate line items.
The practical problem for small hotels
Calculating the right slab per booking, splitting CGST/SGST, numbering invoices sequentially, and keeping records for filing is tedious and error‑prone on paper or in a spreadsheet — and mistakes cost you at filing time.
How BitLegacy Hotels helps
BitLegacy Hotels generates GST‑compliant invoices automatically — correct slab, CGST/SGST split, sequential numbering, and your GSTIN — so your billing is right every time without manual calculation. It is built specifically for independent Indian hotels.
Frequently asked questions
What is the GST rate on hotel rooms in India?
Following the reform effective 22 September 2025, hotel rooms with a tariff up to ₹7,500 per night attract 5% GST (without input tax credit), and rooms above ₹7,500 per night attract 18% GST (with input tax credit). The rate is based on the room tariff, not the hotel's star rating. Always confirm the current rate with your accountant, as GST rules change.
What details must a hotel GST invoice show?
A compliant hotel tax invoice should include your hotel's name, address and GSTIN, a unique invoice number and date, the guest's details (and GSTIN if they want input credit), a description of the stay, the taxable value, the GST rate, and the CGST and SGST (or IGST) shown separately.
Is GST charged separately on hotel restaurant food?
Yes. Room and food are taxed separately. In hotels where room tariffs stay at or below ₹7,500, in-house restaurant service is generally taxed at 5% without input tax credit; in 'specified premises' (where a room crossed ₹7,500), it is 18% with input tax credit.
Want help putting this into practice?
BitLegacy builds software and websites that solve real business problems — and runs BitLegacy Hotels, hotel management software for independent Indian hotels.
About the author
Captainjeet Kaur
Managing Director, BitLegacy Solutions LLP
Captainjeet Kaur leads BitLegacy Solutions LLP, an India‑based IT consultancy and software company behind BitLegacy Hotels. She writes about technology, software, and helping businesses grow with research‑backed solutions.
