Star rating of hotels irrelevant for determining applicable rate of GST; GST @ 18% applicable

New Delhi, July 18 (KNN) Government has clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than Rs 7500 per unit per day, will attract GST @ 18%.

Finance Ministry has said that star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST. 

Reports have been received expressing doubts whether 5-star Hotels are liable to pay GST @ 28% irrespective of the declared tariff of a unit of accommodation. 

In this context, it is hereby clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%.

Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST, Finance Ministry said.