{"id":10924,"date":"2026-08-02T12:12:01","date_gmt":"2026-08-02T12:12:01","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=10924"},"modified":"2026-08-02T12:17:38","modified_gmt":"2026-08-02T12:17:38","slug":"gst-on-hotels-restaurants-applying-correct-gst-rate","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/","title":{"rendered":"GST on Hotels &#038; Restaurants \u2013 Applying Correct GST Rate?"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10925\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/08\/gst1.jpg\" alt=\"GST on Hotels &amp; Restaurants\" width=\"1280\" height=\"815\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/08\/gst1.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/08\/gst1-300x191.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/08\/gst1-1024x652.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/08\/gst1-768x489.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/08\/gst1-800x509.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a70252ab2259\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a70252ab2259\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#GST_on_Hotels_Restaurants_%E2%80%93_Are_You_Applying_the_Correct_GST_Rate\" title=\"GST on Hotels &amp; Restaurants \u2013 Are You Applying the Correct GST Rate?\">GST on Hotels &amp; Restaurants \u2013 Are You Applying the Correct GST Rate?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#GST_Rate_Chart_for_Hotels_Restaurants_Catering_Services\" title=\"GST Rate Chart for Hotels, Restaurants &amp; Catering Services\">GST Rate Chart for Hotels, Restaurants &amp; Catering Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#_Hotel_Accommodation_GST_Rates\" title=\"\u00a0Hotel Accommodation GST Rates\">\u00a0Hotel Accommodation GST Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#Restaurant_GST_Rates\" title=\"Restaurant GST Rates\">Restaurant GST Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#_Outdoor_Catering_GST_Rates\" title=\"\u00a0Outdoor Catering GST Rates\">\u00a0Outdoor Catering GST Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#Banquet_Hall_Wedding_Package_GST\" title=\"Banquet Hall &amp; Wedding Package GST\">Banquet Hall &amp; Wedding Package GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#_What_is_a_%E2%80%9Cspecified_premise%E2%80%9D\" title=\"\u00a0What is a &#8220;specified premise&#8221;?\">\u00a0What is a &#8220;specified premise&#8221;?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#Quick_Compliance_Checklist_%E2%80%93_GST_on_Hotels_Restaurants\" title=\"Quick Compliance Checklist &#8211;\u00a0GST on Hotels &amp; Restaurants\">Quick Compliance Checklist &#8211;\u00a0GST on Hotels &amp; Restaurants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#Practical_Advice_for_Businesses_Safe_Compliant_in_2026\" title=\"Practical Advice for Businesses Safe &amp; Compliant in 2026): \">Practical Advice for Businesses Safe &amp; Compliant in 2026): <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-on-hotels-restaurants-applying-correct-gst-rate\/#Practical_Rule\" title=\"Practical Rule: \">Practical Rule: <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"GST_on_Hotels_Restaurants_%E2%80%93_Are_You_Applying_the_Correct_GST_Rate\"><\/span><span style=\"color: #000080;\"><strong>GST on Hotels &amp; Restaurants \u2013 Are You Applying the Correct GST Rate?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong><em>(Based on Notification No. 11\/2017-Central Tax (Rate) as amended, effective from 22 September 2025)<\/em><\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"GST_Rate_Chart_for_Hotels_Restaurants_Catering_Services\"><\/span><span style=\"color: #000080;\"><strong>GST Rate Chart for Hotels, Restaurants &amp; Catering Services<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><strong>Sr. No.<\/strong><\/td>\n<td><strong>Particulars of Service<\/strong><\/td>\n<td><strong>SAC Code<\/strong><\/td>\n<td><strong>GST Rate<\/strong><\/td>\n<td><strong>ITC Eligibility<\/strong><\/td>\n<td><strong>Key Condition<\/strong><\/td>\n<\/tr>\n<tr>\n<td>A1<\/td>\n<td>Hotel accommodation where room\/unit value is up to INR 7,500 per day<\/td>\n<td>996311<\/td>\n<td>5%<\/td>\n<td>\u00a0No ITC<\/td>\n<td>Mandatory rate; hotel cannot opt for 18% with ITC<\/td>\n<\/tr>\n<tr>\n<td>A2<\/td>\n<td>Hotel accommodation where room\/unit value exceeds INR 7,500 per day<\/td>\n<td>996311<\/td>\n<td>18%<\/td>\n<td>ITC Available<\/td>\n<td>Full ITC available subject to GST provisions<\/td>\n<\/tr>\n<tr>\n<td>B1<\/td>\n<td>Restaurant services other than at specified premises<\/td>\n<td>996331<\/td>\n<td>5%<\/td>\n<td>\u00a0No ITC<\/td>\n<td>Includes dine-in, takeaway, delivery and room service<\/td>\n<\/tr>\n<tr>\n<td>B2<\/td>\n<td>Restaurant services at specified premises<\/td>\n<td>996331<\/td>\n<td>18%<\/td>\n<td>ITC Available<\/td>\n<td>Applicable to restaurants operating from specified premises<\/td>\n<\/tr>\n<tr>\n<td>C1<\/td>\n<td>Outdoor catering outside specified premises<\/td>\n<td>996335<\/td>\n<td>5%<\/td>\n<td>\u00a0No ITC<\/td>\n<td>No ITC on inputs, input services or capital goods<\/td>\n<\/tr>\n<tr>\n<td>C2<\/td>\n<td>Outdoor catering at specified premises<\/td>\n<td>996335<\/td>\n<td>18%<\/td>\n<td>ITC Available<\/td>\n<td>Catering supplied through specified premises arrangement<\/td>\n<\/tr>\n<tr>\n<td>C3<\/td>\n<td>Banquet \/ Event Package with Catering<\/td>\n<td>996314 \/ 996335<\/td>\n<td>18% (Generally)<\/td>\n<td>ITC Available<\/td>\n<td>Includes weddings, conferences, banquets and event packages<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_Hotel_Accommodation_GST_Rates\"><\/span><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Hotel Accommodation GST Rates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 178px;\" width=\"797\">\n<tbody>\n<tr>\n<td><strong>Room Tariff Per Day<\/strong><\/td>\n<td><strong>GST Rate<\/strong><\/td>\n<td><strong>ITC to Hotel<\/strong><\/td>\n<td><strong>Example<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Up to INR 7,500<\/td>\n<td>5%<\/td>\n<td>No<\/td>\n<td>Room rent INR 5,000 \u2192 GST INR 250<\/td>\n<\/tr>\n<tr>\n<td>Above INR 7,500<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<td>Room rent INR 10,000 \u2192 GST INR 1,800<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>Example 1: Budget Hotel<\/strong><\/span><\/p>\n<table style=\"height: 242px;\" width=\"686\">\n<tbody>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Amount<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Room Tariff<\/td>\n<td>INR 5,000<\/td>\n<\/tr>\n<tr>\n<td>GST @ 5%<\/td>\n<td>INR 250<\/td>\n<\/tr>\n<tr>\n<td>Total Bill<\/td>\n<td>INR 5,250<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Result: Hotel cannot claim ITC on furniture, maintenance, housekeeping, security, etc.<\/strong><\/span><\/p>\n<p><strong>\u00a0<\/strong><span style=\"color: #000080;\"><strong>Example 2: Luxury Hotel<\/strong><\/span><\/p>\n<table style=\"height: 272px;\" width=\"768\">\n<tbody>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Amount<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Room Tariff<\/td>\n<td>INR 10,000<\/td>\n<\/tr>\n<tr>\n<td>GST @ 18%<\/td>\n<td>INR 1,800<\/td>\n<\/tr>\n<tr>\n<td>Total Bill<\/td>\n<td>INR 11,800<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Result: Hotel can claim ITC on eligible business expenses.<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Restaurant_GST_Rates\"><\/span><span style=\"color: #000080;\"><strong>Restaurant GST Rates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 337px;\" width=\"735\">\n<tbody>\n<tr>\n<td><strong>Type of Restaurant<\/strong><\/td>\n<td><strong>GST Rate<\/strong><\/td>\n<td><strong>ITC<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Standalone Restaurant<\/td>\n<td>5%<\/td>\n<td>No ITC<\/td>\n<\/tr>\n<tr>\n<td>Food Court \/ Caf\u00e9<\/td>\n<td>5%<\/td>\n<td>No ITC<\/td>\n<\/tr>\n<tr>\n<td>Restaurant at Specified Premises<\/td>\n<td>18%<\/td>\n<td>ITC Available<\/td>\n<\/tr>\n<tr>\n<td>Hotel Restaurant at Luxury Property<\/td>\n<td>18%<\/td>\n<td>ITC Available<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Example<\/strong><\/span><\/p>\n<table style=\"height: 411px;\" width=\"889\">\n<tbody>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Standalone Restaurant<\/strong><\/td>\n<td><strong>Restaurant at Specified Premises<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Food Bill<\/td>\n<td>INR 2,000<\/td>\n<td>INR 2,000<\/td>\n<\/tr>\n<tr>\n<td>GST Rate<\/td>\n<td>5%<\/td>\n<td>18%<\/td>\n<\/tr>\n<tr>\n<td>GST Amount<\/td>\n<td>INR 100<\/td>\n<td>INR 360<\/td>\n<\/tr>\n<tr>\n<td>Total Bill<\/td>\n<td>INR 2,100<\/td>\n<td>INR 2,360<\/td>\n<\/tr>\n<tr>\n<td>ITC to Restaurant<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_Outdoor_Catering_GST_Rates\"><\/span><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Outdoor Catering GST Rates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 196px;\" width=\"816\">\n<tbody>\n<tr>\n<td><strong>Type of Catering<\/strong><\/td>\n<td><strong>GST Rate<\/strong><\/td>\n<td><strong>ITC<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Catering outside specified premises<\/td>\n<td>5%<\/td>\n<td>No ITC<\/td>\n<\/tr>\n<tr>\n<td>Catering at specified premises<\/td>\n<td>18%<\/td>\n<td>ITC Available<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Example<\/strong><\/span><\/p>\n<table style=\"height: 202px;\" width=\"797\">\n<tbody>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Amount<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Catering Contract Value<\/td>\n<td>INR 1,00,000<\/td>\n<\/tr>\n<tr>\n<td>GST @ 5%<\/td>\n<td>INR 5,000<\/td>\n<\/tr>\n<tr>\n<td>Total Invoice<\/td>\n<td>INR 1,05,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>Result: No ITC available to caterer.<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Banquet_Hall_Wedding_Package_GST\"><\/span><span style=\"color: #000080;\"><strong>Banquet Hall &amp; Wedding Package GST<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 296px;\" width=\"776\">\n<tbody>\n<tr>\n<td><strong>Service<\/strong><\/td>\n<td><strong>GST Rate<\/strong><\/td>\n<td><strong>ITC<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Wedding Package<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Banquet Hall Rental with Catering<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Conference Package<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Event Package<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>Example<\/strong><\/span><\/p>\n<table style=\"height: 383px;\" width=\"804\">\n<tbody>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Amount<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Hall Rental<\/td>\n<td>INR 8,00,000<\/td>\n<\/tr>\n<tr>\n<td>Catering Charges<\/td>\n<td>INR 12,00,000<\/td>\n<\/tr>\n<tr>\n<td>Decoration<\/td>\n<td>INR 3,00,000<\/td>\n<\/tr>\n<tr>\n<td>Total Package<\/td>\n<td>INR 23,00,000<\/td>\n<\/tr>\n<tr>\n<td>GST @18%<\/td>\n<td>INR 4,14,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_What_is_a_%E2%80%9Cspecified_premise%E2%80%9D\"><\/span><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>What is a &#8220;specified premise&#8221;?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>A premise is treated as a specified premise if:<\/strong><\/span><\/p>\n<table style=\"height: 300px;\" width=\"833\">\n<tbody>\n<tr>\n<td width=\"385\"><strong>Condition<\/strong><\/td>\n<td width=\"153\"><strong>Status<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"385\">Hotel room value exceeded INR 7,500 per day in previous FY<\/td>\n<td width=\"153\">Specified Premises<\/td>\n<\/tr>\n<tr>\n<td width=\"385\">Hotel voluntarily opts for specified premises status<\/td>\n<td width=\"153\">Specified Premises<\/td>\n<\/tr>\n<tr>\n<td width=\"385\">Hotel room value below threshold and no option exercised<\/td>\n<td width=\"153\">Not a Specified Premises<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Why It Matters?<\/strong><\/span><\/p>\n<table style=\"height: 189px;\" width=\"817\">\n<tbody>\n<tr>\n<td width=\"385\"><strong>Restaurant Category<\/strong><\/td>\n<td width=\"155\"><strong>GST Rate<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"385\">Non-Specified Premises<\/td>\n<td width=\"155\">5% (No ITC)<\/td>\n<\/tr>\n<tr>\n<td width=\"385\">Specified Premises<\/td>\n<td width=\"155\">18% (With ITC)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Quick_Compliance_Checklist_%E2%80%93_GST_on_Hotels_Restaurants\"><\/span><span style=\"color: #000080;\"><strong>Quick Compliance Checklist<\/strong><strong> &#8211;\u00a0<\/strong><strong>GST on Hotels &amp; Restaurants<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 626px;\" width=\"850\">\n<tbody>\n<tr>\n<td><strong>Check Point<\/strong><\/td>\n<td><strong>Action Required<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Room value up to INR 7,500<\/td>\n<td>Charge 5% GST<\/td>\n<\/tr>\n<tr>\n<td>Room value above INR 7,500<\/td>\n<td>Charge 18% GST<\/td>\n<\/tr>\n<tr>\n<td>Standalone restaurant<\/td>\n<td>Charge 5% GST<\/td>\n<\/tr>\n<tr>\n<td>Restaurant at specified premises<\/td>\n<td>Charge 18% GST<\/td>\n<\/tr>\n<tr>\n<td>Outdoor catering outside specified premises<\/td>\n<td>Charge 5% GST<\/td>\n<\/tr>\n<tr>\n<td>Catering at specified premises<\/td>\n<td>Charge 18% GST<\/td>\n<\/tr>\n<tr>\n<td>Banquet package with hall &amp; catering<\/td>\n<td>Generally 18% GST<\/td>\n<\/tr>\n<tr>\n<td>Mixed supplies<\/td>\n<td>Review contract and invoice structure carefully<\/td>\n<\/tr>\n<tr>\n<td>ITC reversal<\/td>\n<td>Apply Rules 42\/43 where required<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>\u00a0<\/strong><strong>One-Line Summary<\/strong><\/p>\n<table style=\"height: 506px;\" width=\"823\">\n<tbody>\n<tr>\n<td>Service Type<\/td>\n<td>GST Rate<\/td>\n<td>ITC<\/td>\n<\/tr>\n<tr>\n<td>Budget Hotel (\u2264 INR 7,500)<\/td>\n<td>5%<\/td>\n<td>\u00a0No<\/td>\n<\/tr>\n<tr>\n<td>Luxury Hotel (&gt; INR 7,500)<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Standalone Restaurant<\/td>\n<td>5%<\/td>\n<td>\u00a0No<\/td>\n<\/tr>\n<tr>\n<td>Restaurant at Specified Premises<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Outdoor Catering (Normal)<\/td>\n<td>5%<\/td>\n<td>\u00a0No<\/td>\n<\/tr>\n<tr>\n<td>Catering at Specified Premises<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Banquet \/ Event Package<\/td>\n<td>18%<\/td>\n<td>Yes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Practical_Advice_for_Businesses_Safe_Compliant_in_2026\"><\/span><span style=\"color: #000080;\"><strong>Practical Advice for Businesses Safe &amp; Compliant in 2026): <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Do NOT claim ITC on hotel accommodation invoices unless you&#8217;re a tour operator\/travel agent making onward taxable supply of hotel stays. Wrong claims can lead to notices, interest &amp; penalties!<\/li>\n<li>Treat GST paid on hotel stays as a business expense (no credit).<\/li>\n<li>Business travelers can claim ITC only when GST is charged at 18% and subject to fulfillment of conditions under Section 16 of the CGST Act. &#8221; is not expressly stated in Section 16 of the CGST Act\u00a0 also Blocked Credit Rule\u2014Section 17(5)(b)(i) of CGST Act, 2017. ITC is only allowed if the inward hotel supply is used to make an outward taxable supply of the same category (i.e., you are resupplying hotel accommodation as a taxable service). but is derived from a combined reading of the GST rate notification for hotel accommodation and the ITC provisions.<\/li>\n<li>Hotels: Carefully reverse proportionate ITC for 5% supplies (under Rules 42\/43 if mixed with 18% rooms).<\/li>\n<li>Always keep invoices, booking proofs, and purpose docs\u2014helpful for audits. Practical Documentation Requirements: For Businesses Claiming ITC: Invoice requirements Company name, Company GSTIN, Hotel GST invoice, GST separately charged along with supporting documents like travel approval, employee travel itinerary, Business purpose documentation, and expense reimbursement records.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Practical_Rule\"><\/span><span style=\"color: #000080;\"><strong>Practical Rule: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If the supply is taxed at 5%, ITC is generally not available.<\/li>\n<li>If taxed at 18%, ITC is generally available, subject to normal GST conditions and specific ITC restrictions under the CGST Act.<\/li>\n<li>For luxury stays (&gt;INR 7,500), the hotel enjoys ITC, but you (as guest) usually don&#8217;t. unless if the inward hotel supply is used to make an outward taxable supply of the same category (i.e., you are resupplying hotel accommodation as a taxable service).<\/li>\n<li>This is one of the most misunderstood areas in GST \u2013 many companies still wrongly claim ITC on business travel hotels and face demands later. Stay cautious!<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>GST on Hotels &amp; Restaurants \u2013 Are You Applying the Correct GST Rate? \u00a0(Based on Notification No. 11\/2017-Central Tax (Rate) as amended, effective from 22 September 2025) GST Rate Chart for Hotels, Restaurants &amp; Catering Services Sr. No. Particulars of Service SAC Code GST Rate ITC Eligibility Key Condition A1 Hotel accommodation where room\/unit value &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1287],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10924"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=10924"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10924\/revisions"}],"predecessor-version":[{"id":10927,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10924\/revisions\/10927"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=10924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=10924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=10924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}