The latest GST Rate On Hotel Rooms in India changes introduced from 22 September 2025 have made it important for hoteliers to revisit their tax configuration, especially around the 5% GST and 18% GST slabs for hotel accommodation. A guest books a hotel room for ₹7,500 today. Tomorrow, the same room is sold for ₹7,600. The difference is only ₹100 — but the GST treatment may change completely. For hotels, GST is not just about applying a tax percentage at checkout. Room rates change every day due to demand, seasonality, OTA promotions, corporate contracts and dynamic pricing strategies. Without the right understanding and billing configuration, hotels can face incorrect invoices, reconciliation challenges and compliance risks. This complete guide covers the updated new GST rate on hotel room rent in India, calculation examples, ITC impact, billing requirements and how hotels can use connected PMS technology to manage GST workflows more efficiently. Important: This guide is for general informational purposes and reflects GST information available at the time of publication. GST notifications, interpretations and compliance requirements can change. Hotels should confirm their specific tax treatment with current CBIC/GST notifications and a qualified GST or tax professional before configuring rates, claiming ITC or filing returns. New GST Rate on Hotel Room Rent in India (Updated 2026) The new GST rate on hotel room rent in India depends on the value of accommodation supplied per unit per day. After the GST rate changes effective from 22 September 2025, hotels need to apply the following structure: Hotel Room Rent (Accommodation Value Per Unit Per Day) Applicable GST Rate ITC Availability Up to ₹7,500 5% GST No ITC Above ₹7,500 18% GST Eligible ITC, subject to applicable conditions 💡 For example: Hotel room rent: ₹6,000 per day Applicable GST: ₹6,000 × 5% = ₹300 Guest pays: ₹6,300 Hotel room rent: ₹9,000 per day Applicable GST: ₹9,000 × 18% = ₹1,620 Guest pays: ₹10,620 The GST rate is determined by the value of accommodation supplied, not simply by: Hotel star category Property size Location Brand positioning A luxury hotel offering a room below the applicable threshold may fall under the 5% category, while a smaller property selling accommodation above ₹7,500 may fall under the 18% category. Hotels should therefore ensure their PMS, reservation system and billing workflows are configured according to the applicable GST rules rather than using fixed assumptions based on property type. Read Also – Top PMS Software for Small Hotels: What Owners Should Check Before Buying Why This GST Change is Important for Hotels? The revised GST structure impacts more than guest invoices. Hotels need to review: Room Pricing Strategy Dynamic pricing can move the same room between GST categories. Example: Date Room Rent GST Impact Weekday ₹6,800 5% GST Weekend ₹8,200 18% GST Corporate Bookings Business travelers often require: GST invoices Correct GSTIN details Tax breakup Company billing information Incorrect configuration can create invoice corrections and reconciliation issues. OTA Bookings Hotels receiving reservations from: Booking.com Expedia Agoda MakeMyTrip need to ensure that: Room value Discounts Taxes Payments Settlement reports are accurately reconciled. Hotel Billing Systems 💡 Manual GST calculations become difficult when hotels manage: Multiple room categories Seasonal rates Promotions Corporate contracts Packages Additional services A connected PMS helps hotels maintain consistency between: Reservation → Room Rate → Tax Configuration → Guest Folio → GST Invoice Read Also – Best Front Desk Operations Software for US Small Hotels to Reduce No-Shows and Increase Upsells What Has Been Changed Hotel GST in India From 22 September 2025? Until 21 September 2025, hotel accommodation with a value up to ₹7,500 per unit per day generally attracted 12% GST with ITC. From 22 September 2025, that rate changed to: 5% GST without ITC for hotel accommodation valued at ₹7,500 or less per unit per day. Accommodation above ₹7,500 continues to fall under the 18% GST category. Hotel GST Rate Change at a Glance Hotel accommodation value Earlier treatment From 22 September 2025 ₹7,500 or less per unit/day 12% 5% without ITC Above ₹7,500 per unit/day 18% 18% For hotels, the rate reduction can make the tax charged to guests lower on rooms within the ₹7,500 category, but the loss of ITC changes the cost and accounting implications for the hotel. That means hoteliers should not evaluate the change only as: “GST fell from 12% to 5%.” The more complete business question is: “How does the lower output tax rate combined with the restriction on input tax credit affect our hotel’s costs, pricing and margins?” Hotels with multiple room categories may also need to deal with supplies falling under different tax treatments. Read Also – Hotel PMS Pricing Guide: Cost, Features, and ROI Explained Is GST Still Exempt on Hotel Rooms Below ₹1,000? No. This is one of the most important outdated GST claims still appearing in hotel tax content online. The exemption previously available for low-value hotel accommodation was withdrawn from 18 July 2022. Therefore, under the current post-22 September 2025 rate structure, hotel accommodation valued at: ₹1,000 or less per unit per day does not become GST-exempt merely because it falls below ₹1,000. It falls within the accommodation category of: ₹7,500 or less → 5% GST without ITC For example: Room value: ₹900 GST at 5%: ₹900 × 5% = ₹45 Total including GST: ₹945 This distinction is particularly important for: Budget hotels Guest houses Hostels Lodges Economy accommodation Small independent properties Hoteliers should review older tax configurations if their billing systems still treat accommodation below ₹1,000 as exempt. Read Also – GDS System for Hotels: Complete Guide to Global Distribution Systems in Travel How Is GST Calculated on Hotel Room Tariff? The basic hotel GST calculation is straightforward once the correct taxable value and GST rate have been determined. 💡 Formula GST Amount = Taxable Value × Applicable GST Rate Then: Total Guest Amount = Taxable Value + GST Here are some examples. Example 1: Hotel Room at ₹3,000 Room value: ₹3,000 Applicable GST: 5% GST: ₹3,000 × 5% = ₹150 Total: ₹3,150 Example 2: Hotel Room at ₹5,000 Room value: ₹5,000 GST at 5%: ₹5,000 × 5% = ₹250 Total payable: ₹5,250 Example 3: Hotel Room at Exactly ₹7,500 Room value: ₹7,500 The value is still within the “₹7,500 or less” category. GST: ₹7,500 × 5% = ₹375 Total: ₹7,875 Example 4: Hotel Room at ₹8,000 Room value: ₹8,000 The accommodation value is now above ₹7,500. GST: ₹8,000 × 18% = ₹1,440 Total: ₹9,440 Read Also – Hotel Reporting Software: How Better Reports Improve Decisions Why the ₹7,500 Threshold Matters Consider two rooms: 💡 Room A ₹7,500 GST = 5% GST amount = ₹375 Total = ₹7,875 Room B ₹7,501 GST = 18% GST amount = ₹1,350.18 Total = ₹8,851.18 A difference of ₹1 in the underlying accommodation value can therefore place the supply in a different GST rate category. For revenue and front-office teams, this is why the relationship between room pricing, applicable GST configuration and hotel billing deserves careful attention. Want to See Hotelogix in Action Book a Live Demo → Is Hotel GST in India Calculated on Rack Rate or the Actual Room Value? Hotels often publish one rate and sell the same room at another. For example: Published room rate: ₹8,500 Promotional selling price: ₹7,000 This creates an important GST question: Which value determines the tax treatment? Modern hotel GST rules use the value of supply rather than the old “declared tariff” concept for determining the accommodation rate. However, determining the correct value of supply can become more complicated where the booking includes: Discounts Mandatory charges Packages Complimentary services Related-party transactions Corporate contracts OTA-funded promotions Hotel-funded promotions Hotels should therefore avoid creating a blanket rule that says: “Always calculate GST using the rack rate.” Likewise, do not assume every discount automatically changes the taxable value. The transaction needs to be evaluated under applicable GST valuation rules. Simple Illustration 💡 Suppose: Published room rate = ₹8,000 Hotel-approved discount = ₹1,000 Eligible taxable value after discount = ₹7,000 If that ₹7,000 is the value of supply under the applicable GST rules, the accommodation would fall within the ₹7,500-or-less category. But because discount structures can differ, hotels should have their tax professional validate how their specific promotions and contracts should be treated. Read Also – Resort Management Software: Complete Buyer’s Guide for Resorts GST on Hotel Rooms Up to ₹7,500 The largest accommodation category affected by the September 2025 change is hotel accommodation with a value of ₹7,500 or less per unit per day. The applicable rate is: 5% GST without ITC Hotels supplying accommodation within this category do not have the option simply to charge 18% so they can claim ITC. The 5% without-ITC treatment is mandatory for qualifying accommodation. This affects properties across multiple segments: Budget hotels Mid-market hotels Business hotels Resorts Independent hotels Hotel chains The tax treatment follows the accommodation value rather than a simplistic label such as “budget hotel” or “four-star hotel.” For example, a premium hotel could sell a room for ₹7,000 on a low-demand date. That particular accommodation supply may fall into the 5% category even though the property itself is positioned as an upscale hotel. Read Also – Multi-Property PMS for Hotel Groups & Chains: How They Can Centralize Operations GST on Hotel Rooms Above ₹7,500 💡 When the value of hotel accommodation is above ₹7,500 per unit per day, the applicable GST rate is generally: 18% This category also has a different ITC treatment from accommodation taxed at 5%. For example: Room value = ₹12,000 GST: ₹12,000 × 18% = ₹2,160 Total: ₹14,160 The rate does not become 18% merely because: The property is a five-star hotel It calls itself a luxury hotel It is located in an expensive destination The guest is a corporate traveler The value of the accommodation supply is the key rate threshold. This distinction matters for properties using dynamic hotel pricing, where the same room could be sold below ₹7,500 on one night and above ₹7,500 on another. Read Also – Hotel Automation Software: How Hotels Can Reduce Manual Work How Does Input Tax Credit (ITC) Work for Hotels After the GST Change? Input Tax Credit (ITC) allows eligible GST-registered businesses to offset qualifying GST paid on inputs and input services against their output GST liability, subject to GST law and applicable conditions. The September 2025 accommodation changes created an important distinction. Accommodation at ₹7,500 or Less GST: 5% ITC: Not available for the inputs/input services used in supplying that accommodation, subject to the prescribed restriction. Hotels cannot voluntarily select: 18% + ITC for accommodation that falls within the mandatory 5% category. Accommodation Above ₹7,500 GST: 18% ITC can be available subject to the normal eligibility requirements, restrictions and documentation under GST law. Read Also – Common Hotel PMS Mistakes Hotels Make Before Buying Software Why Mixed-Rate Hotels Need More Attention Consider a resort that sells: Standard Room: ₹6,500 Premium Room: ₹8,500 The hotel may therefore make accommodation supplies falling under both: 5% without ITC and 18% with eligible ITC That can make the treatment of common inputs and input services more complicated. Hotels may need to identify: Inputs used exclusively for 5% supplies Inputs used for eligible taxable supplies Common input services Appropriate ITC reversals/apportionment This is an accounting and tax-compliance area where hotels should involve their CA or GST adviser rather than relying entirely on automated software settings. Read Also – Housekeeping Management Software for Hotels: Complete Guide How Dynamic Hotel Pricing Can Change the GST Rate This is where hotel GST becomes an operational issue rather than simply an accounting issue. Modern hotels rarely sell every room at one fixed rate. Rates can change according to: Occupancy Demand Day of week Season Local events Booking window Competitor pricing Corporate agreements OTA promotions Last-minute demand Consider the same room across three nights. Date Room value GST rate Monday ₹6,500 5% Friday ₹7,500 5% Saturday ₹8,500 18% The physical room has not changed. The value of the accommodation supply has. This is why hotel tax configuration needs to work correctly alongside: Rate management Reservations Packages Discounts Billing PMS workflows Hotels using spreadsheets or manually calculating GST should pay particular attention to rate changes around the ₹7,500 threshold. Read Also – Mobile PMS for Hotels: Why Managers Need Access Anywhere What Happens When a Guest Stays Multiple Nights at Different Room Rates? Consider a three-night stay: Night 1 Room value = ₹7,000 GST rate = 5% GST = ₹350 Night 2 Room value = ₹7,500 GST rate = 5% GST = ₹375 Night 3 Room value = ₹8,000 GST rate = 18% GST = ₹1,440 The hotel’s billing workflow needs to account correctly for the applicable value and tax treatment rather than blindly applying one rate to the total stay. This becomes especially important for: Dynamic rates Weekend rates Seasonal pricing Extended stays Rate-plan changes Room upgrades Hotels should have their specific billing logic validated against applicable GST rules. GST on Hotel Room Discounts and Promotional Rates Hotels routinely offer: Early-bird discounts Last-minute discounts Corporate rates Member rates OTA promotions Seasonal offers Coupon discounts Long-stay rates Suppose: Standard selling rate = ₹8,000 Eligible discount = ₹1,000 Resulting taxable value under applicable valuation rules = ₹7,000 The GST category could differ from the category applicable to an ₹8,000 taxable value. But there is an important caveat. Not every discount arrangement is identical. For example: Hotel-funded discount may have different commercial mechanics from: OTA-funded coupon or: Post-supply discount or: Corporate contracted rate Therefore, front-office and revenue teams should not manually alter tax rates based only on the amount the guest appears to pay on an OTA confirmation. The hotel’s accounting treatment should follow the actual transaction and applicable GST valuation rules. Want to See Hotelogix in Action Book a Live Demo → GST on Hotel Restaurant and Room Service in India Hotel GST becomes more complicated when the guest uses services beyond accommodation. A typical stay may contain: Room ↓ Breakfast ↓ Restaurant ↓ Room Service ↓ Laundry ↓ Spa The GST treatment of restaurant services should not simply be copied from the accommodation rate. Restaurant services have their own GST framework, including rules concerning specified premises. From April 2025, the specified-premises framework was changed so that the restaurant-service treatment can depend on the relevant accommodation-value conditions in the preceding financial year and available declaration mechanisms. As a result, hotels should not rely on outdated rules such as: “Restaurant GST automatically changes every time tonight’s room rate crosses ₹7,500.” Hotel restaurant GST needs to be configured according to the current specified-premises rules applicable to that property and financial year. This is particularly important for: Hotels with restaurants Resorts Multi-outlet properties Banquet hotels Properties offering room service Read Also – Guest Services App for Hotels: How to Improve Guest Experience GST on Hotel Packages: Room + Breakfast + Other Services Hotel packages are commercially attractive but can create additional tax questions. Examples include: Package A Room + breakfast Package B Room + breakfast + airport transfer Package C Room + dinner + spa Package D Room + event ticket + meals Hotels need to determine whether the arrangement involves: Separate supplies Composite supply Mixed supply A principal supply with ancillary components The GST treatment can depend on how the package is structured and supplied. For example, a hotel should not automatically split a single package into artificial components merely to obtain a lower tax rate. Likewise, it should not automatically apply the room GST rate to every additional service without checking the applicable treatment. Hotels offering packages should have their package configurations reviewed by a GST professional and then ensure those approved configurations are reflected correctly in the PMS and billing system. Read Also – Hotel Cancellation Policy: Complete Guide for Hotels GST on Banquets, Conferences and Hotel Events in India Hotels increasingly earn revenue beyond room nights. Revenue can come from: Banquet halls Weddings Conferences Meetings Catering Corporate events Venue hire Consider a wedding package containing: Banquet Hall ↓ Food ↓ Decoration Coordination ↓ Accommodation The tax treatment cannot necessarily be determined simply by looking at the room GST slab. Hotels need to evaluate: Nature of the supply Whether supplies are bundled Catering treatment Premises classification Applicable GST notifications Invoice structure This is another reason hotel billing is more complicated than ordinary retail invoicing. Read Also – Latest Tourism Reports and Statistics 2026: What Hotels Need to Know GST on Corporate Hotel Bookings in India Corporate travel introduces additional billing requirements. A business traveler may book a room through: Company travel desk Travel management company OTA Hotel website Direct corporate contract The hotel may need to capture information such as: Company name Billing address GSTIN Guest name Reservation details Taxable value Tax breakup Invoice number Applicable place-of-supply details The payer may also differ from the guest. For example: Company pays: Room + breakfast Guest pays: Minibar + spa The hotel needs to route charges correctly and issue the appropriate invoices according to its validated billing workflow. Businesses considering ITC should also ensure the invoice and underlying supply meet applicable GST requirements rather than assuming every hotel expense automatically qualifies for credit. Read Also – Tech & Tonic 2026 Manila: Conversations That Mattered for the Future of Hospitality CGST, SGST and Place of Supply for Hotel Accommodation Hotel accommodation is directly connected with immovable property. For domestic transactions, the place of supply for lodging accommodation provided by a hotel is generally the location of the hotel/property under the IGST Act’s immovable-property rules. Consider: Guest/company location: Delhi Hotel location: Karnataka The fact that the customer is located in Delhi does not automatically make the hotel accommodation an inter-state service for billing purposes. The location of the accommodation property is central to determining the place of supply. This is especially important for: Corporate travel Centralized company bookings Travel agencies Multi-state hotel groups GST invoice configuration Hotels should ensure their invoicing workflow is configured according to their registered entities, property locations and applicable place-of-supply rules. Read Also – India Tourism Statistics 2026: Toursim Trends in India Hotels Should Know What Should a GST Hotel Invoice Include? A hotel GST invoice needs more structure than a simple receipt showing: Room: ₹5,000 Tax: ₹250 Total: ₹5,250 Depending on the transaction and applicable invoice requirements, relevant information can include: Hotel/legal entity name Address GSTIN Unique invoice number Invoice date Guest/customer details Customer GSTIN where applicable Description of service SAC Taxable value Applicable GST rate CGST/SGST or other applicable tax breakup Total invoice value Hotel invoices can become considerably more complicated when a stay includes: Room charges Restaurant charges Room service Laundry Spa Minibar Discounts Deposits Advance payments Refunds Corporate billing That is why GST hotel billing should be treated as a complete reservation-to-invoice workflow, not simply a tax calculation at checkout. Want to See Hotelogix in Action Book a Live Demo → GST on Hotel Bookings Through OTAs OTAs add another layer to hotel billing. A typical workflow looks like: Guest Searches Online ↓ Books Through OTA ↓ Reservation Reaches Hotel ↓ Hotel Recognizes Booking ↓ Guest Stays ↓ Hotel Generates Applicable Invoice ↓ Hotel Reconciles OTA Settlement The hotel may need to deal with: Room value OTA promotions Hotel-funded discounts OTA-funded discounts Commission Tax treatment of commission/services Guest invoice OTA settlement Reservation modifications Cancellations One common mistake is assuming: “The amount appearing on the OTA booking confirmation is all the finance team needs.” Hotels should reconcile: Reservation Value ↓ Applicable Taxes ↓ Payments ↓ OTA Commission/Charges ↓ Settlement ↓ Hotel Accounting Records A PMS, channel manager and accounting workflow can reduce repeated data entry, but the hotel’s tax treatment still needs to be configured according to applicable law. Read Also – Hotelogix Pricing: What Hotels Should Know Before Booking a Demo Common GST Billing Mistakes Hotels Should Avoid GST errors often happen because tax rules meet complex hotel operations. Here are some practical problems hotels should watch for. 1. Still Charging the Old 12% Accommodation Rate Hotel accommodation of ₹7,500 or less moved to 5% without ITC from 22 September 2025. Properties should ensure legacy tax configurations have been updated. 2. Treating Rooms Below ₹1,000 as GST-Exempt The old exemption was withdrawn in 2022. Under the current rate structure, these rooms fall within the 5% without-ITC accommodation category. 3. Applying 18% at Exactly ₹7,500 The 5% category applies where the accommodation value is less than or equal to ₹7,500. 18% applies when it is above ₹7,500. 4. Using Hotel Star Rating to Determine Room GST The accommodation rate is not simply: “Budget = 5%” “Luxury = 18%” The applicable accommodation value matters. 5. Ignoring Dynamic Pricing The same room can move across the ₹7,500 threshold as demand changes. 6. Applying Accommodation GST to Every Hotel Service Restaurant, banquet, spa and other services may have different tax treatments. 7. Incorrect Corporate GST Details Incorrect customer information can create reconciliation and ITC problems for corporate customers. 8. Incorrect Treatment of Packages Room + meals + services may require proper analysis rather than one tax rate being applied automatically. 9. Manual Tax Calculation Repeated manual calculations increase the opportunity for errors, particularly at properties with high transaction volumes. 10. Assuming Software Decides Tax Law A PMS can apply configured tax rules consistently. It does not replace a CA or tax professional. The hotel first needs to determine the correct tax treatment and then configure its system accordingly. Read Also – AI in Hospitality: How Hotels Use AI to Boost Revenue & Guest Experience How Hotels Can Manage GST Billing More Efficiently A useful hotel billing workflow should connect the complete guest journey. Reservation ↓ Room Rate ↓ Applicable Tax Configuration ↓ Advance Payment ↓ Check-In ↓ Room Charges ↓ POS / Additional Charges ↓ Guest Folio ↓ Payment ↓ GST Invoice ↓ Reporting / Accounting When these activities happen in separate systems or spreadsheets, hotel teams may spend more time: Re-entering information Checking tax calculations Matching POS charges Correcting invoices Reconciling payments Resolving guest disputes A hotel PMS can provide a more connected operational foundation. Read Also – Best Hotel Software in APAC: The Ultimate PMS Guide for Asia Pacific Hotels How Hotel PMS Software Can Help With GST Hotel Billing A modern hotel property management system (PMS) can bring reservations, guest folios, room charges, taxes, payments and reports into one operational workflow. For Indian hotels, useful billing capabilities to evaluate include: Tax Configuration The system should allow hotels to configure applicable taxes according to the property’s approved tax setup. Guest Folios Room and relevant additional charges should be visible within the guest billing workflow. POS Integration Where a hotel’s restaurant POS is integrated, eligible restaurant or service charges can be posted to the guest folio. Discounts Approved discounts should flow correctly into the billing process. Corporate Billing Hotels should be able to handle company information and more complex payment instructions. Advance Payments Advances should be tracked and adjusted correctly according to the hotel’s configured process. Split Billing Properties frequently need to separate: Company Charges from Guest Personal Charges Invoice Generation The billing system should generate structured invoices based on the hotel’s configured tax and invoice setup. Reports Management and finance teams need access to billing and transaction information for reconciliation and accounting workflows. Hotels evaluating their billing workflow can also read our detailed guide to GST hotel billing software in India, which explains guest folios, POS transactions, corporate billing, advances, refunds, invoice workflows and what hotels should test before choosing a system. Read Also – GST Hotel Billing Software in India How Hotelogix Can Help Hotels Manage GST Billing Workflows For hotels, GST compliance does not begin when the receptionist clicks “Print Invoice.”It starts much earlier. A guest might: Book a Room ↓ Pay an Advance ↓ Change the Reservation ↓ Check In ↓ Order Food ↓ Use the Spa ↓ Receive a Discount ↓ Split the Bill Between Company and Guest ↓ Check Out That entire journey can affect billing. With Hotelogix, we connect core hotel operations such as reservations, front desk, guest folios, billing, POS-related workflows, payments and reporting within the PMS environment. Manage Reservations and Billing Together Our PMS connects reservation information with the operational stay, reducing the need for staff to maintain separate reservation and billing records. Configure Hotel Taxes Hotelogix provides tax-management capabilities, including support for slab-tax configurations and GST-related workflows. The hotel’s applicable tax structure should first be validated with its GST adviser and then configured accordingly. Bring POS Charges Into the Guest Folio Where the relevant POS workflow is integrated, hotels can post applicable food, spa, bar or other charges into the guest folio instead of manually rebuilding the guest’s bill at checkout. Support Corporate and Complex Billing Workflows Indian hotels frequently manage: Company bookings Group reservations Split payments Advance payments Multiple folios Additional guest charges A connected PMS helps keep these transactions associated with the reservation and stay. Connect Accounting and Tax Workflows Hotelogix supports accounting-system connectivity and e-invoicing capabilities. Our integration marketplace also includes India-focused tax technology integrations designed to connect hotel transaction data with GST/e-invoicing workflows. Generate Tax-Ready Invoices Hotelogix supports e-invoicing and tax-ready invoice workflows, helping hotels move from reservation and folio information toward structured billing without rebuilding transaction data manually. Keep Billing Connected With the Rest of Hotel Operations Most importantly, billing is not isolated from hotel operations. With Hotelogix, the workflow can connect: Reservation ↓ Front Desk ↓ Guest Folio ↓ Room + Eligible POS Charges ↓ Payments ↓ Invoice ↓ Reports This can help hotels reduce repetitive data entry and give front-office, finance and management teams a more consistent view of guest transactions. However, technology should apply the tax rules your hotel has configured. Hotelogix does not replace professional GST advice, and hotels should have their tax structure validated before configuring billing rules. Read Also – Best Hotel Management Software in India Hotel GST Compliance Checklist for 2026 Before finalizing your hotel’s GST billing workflow, review the following: Accommodation Rates ☐ Have we removed the outdated 12% accommodation rate where the new rules apply? ☐ Is accommodation valued at ₹7,500 or less configured for the applicable 5% without-ITC treatment? ☐ Is accommodation above ₹7,500 configured according to the applicable 18% treatment? ☐ Have we stopped treating rooms below ₹1,000 as automatically exempt? Pricing ☐ Have we tested rates around ₹7,500? ☐ Have we reviewed dynamic pricing scenarios? ☐ Have we reviewed promotional and discounted rates? ☐ Have we tested multi-night stays with changing daily rates? ITC ☐ Have we identified supplies where ITC is restricted? ☐ Have we reviewed common-input treatment where necessary? ☐ Has our tax professional reviewed ITC allocation/reversal requirements? Hotel Services ☐ Have we separately reviewed restaurant GST? ☐ Have we reviewed room-service treatment? ☐ Have we reviewed banquet/event billing? ☐ Have we reviewed spa and other services? ☐ Have we reviewed hotel packages? Billing ☐ Is the hotel’s GSTIN correct? ☐ Are applicable customer GST details captured correctly? ☐ Is the correct SAC used? ☐ Is the tax breakup correct? ☐ Are corporate billing scenarios tested? ☐ Are split bills handled correctly? ☐ Are advance payments and refunds tested? Technology ☐ Are current tax rules configured in the PMS? ☐ Has the hotel tested ₹7,500 and above-₹7,500 scenarios? ☐ Are POS charges reaching the correct folio? ☐ Are OTA reservations reconciled correctly? ☐ Are invoice and accounting workflows connected? ☐ Has the final configuration been validated by a qualified GST professional? Conclusion The new GST rates on hotel rooms in India became significantly simpler on the surface after the September 2025 change: Hotel accommodation up to ₹7,500 per unit per day → 5% GST without ITC Hotel accommodation above ₹7,500 per unit per day → 18% GST But hotel GST management is not always simple in practice. Dynamic room rates, discounts, packages, restaurant charges, corporate bookings, OTA reservations, ITC restrictions, advances, split payments and additional guest services can all make hotel billing more complicated. That is why hotels should approach GST through two connected layers: Correct Tax Interpretation ↓ Correct System Configuration Your CA or GST professional determines how the law applies to your property. Your hotel technology should then help staff apply the approved configuration consistently across reservations, folios, payments, invoices and reports. For growing hotels, the objective should not be to calculate GST manually at every checkout. It should be to build a billing workflow where the correct approved tax configuration is connected to the complete guest journey. Simplify GST-Ready Hotel Billing With Hotelogix PMS Connected Operations Room rates change. Guests add services. Companies request split bills. OTA bookings need reconciliation. Advances need adjustment. When reservations, POS charges, payments and invoices sit in disconnected systems, billing becomes harder for front-office and finance teams. With Hotelogix, we connect reservations, guest folios, billing, POS-related transactions, payments, reporting, accounting integrations and e-invoicing workflows within a broader cloud hotel-management environment. See how Hotelogix can work with your hotel’s real billing scenarios. Request a Demo Now Ask us to demonstrate your actual room slabs, corporate billing, POS-to-room charges, advances, split payments and GST-ready invoice workflow.