GST on hotel rooms in India: 5% or 18%?

What GST to charge on a room, a homestay or a farm stay package, how to split it on the bill and what the invoice must show — with worked examples.

Short answer. Since 22 September 2025, a room priced up to ₹7,500 per night is taxed at 5% GST, without input tax credit. A room priced above ₹7,500 per night is taxed at 18%, with input tax credit.

The slab depends on the price actually charged for each room for each night, after any discount. Before 22 September 2025, rooms up to ₹7,500 were taxed at 12%.

The two slabs

Price charged per room per night	GST	Split on the bill	Input tax credit
Up to ₹7,500	5%	CGST 2.5% + SGST 2.5%	Not available
Above ₹7,500	18%	CGST 9% + SGST 9%	Available

In a union territory without a legislature, UTGST takes the place of SGST.

How the slab is decided

Per room, per night. The test is the value of one unit of accommodation for one day, not the total of the stay. Two nights at ₹6,000 are 5%, even though the stay costs ₹12,000.
The price you actually charge. The published tariff does not decide it; the price on the bill does. A ₹8,000 room sold at ₹7,200 after a discount is taxed at 5%.
Each night on its own. If Friday is ₹7,000 and Saturday ₹8,500, Friday is taxed at 5% and Saturday at 18% on the same bill.

Worked examples

Stay	Taxable value	Rate	CGST	SGST	Bill total
Homestay room, 2 nights at ₹3,000	₹6,000	5%	₹150	₹150	₹6,300
Farm stay package, 4 adults × ₹1,600 in one cottage, 1 night	₹6,400	5%	₹160	₹160	₹6,720
Villa, 1 night at ₹9,000	₹9,000	18%	₹810	₹810	₹10,620
Friday ₹7,000 + Saturday ₹8,500	₹15,500	5% + 18%	₹940	₹940	₹17,380

In the last example Friday carries ₹350 of GST and Saturday ₹1,530, so the bill shows a GST summary for each rate.

Packages with meals and activities

Farm stays and resorts usually sell one package: the room, meals, activities and the bonfire for one price. That is a composite supply in which accommodation is the main service, so the whole package normally takes the accommodation rate, judged on the package price per room per night. In the second example, four adults at ₹1,600 in one cottage make ₹6,400 for that room for the night, so the package is taxed at 5%.

Services billed separately during the stay, such as laundry, carry their own rate. Day outings without a room, and restaurant bills, follow different rules. Ask your chartered accountant how this applies to your own packages.

Always CGST + SGST, even for guests from another state

The place of supply for accommodation is where the property is. A room in Gujarat is billed with Gujarat's CGST + SGST, whether the guest lives in Mumbai or Delhi, and never with IGST. A company guest can still have its GSTIN printed on the invoice.

What a GST invoice must show

Under rule 46 of the CGST Rules, a tax invoice for a stay shows:

your legal name, address and GSTIN;
a consecutive invoice number, unique in the financial year (at most 16 characters), and the date;
the guest's name — with the address and GSTIN for a registered business guest, and the address for any guest when the bill is ₹50,000 or more;
the SAC (996311 for room accommodation) and a description of the service;
the taxable value after any discount;
the rate and amount of CGST and SGST (or UTGST);
the total value of the bill;
the place of supply, and whether tax is payable on reverse charge;
your signature or digital signature.

An advance received before the stay needs a receipt voucher. A refund or a reduction after the invoice needs a credit note, and an extra charge after it a debit note.

If you are not registered for GST

Registration is required once your turnover goes above ₹20 lakh a year (₹10 lakh in some special-category states). Until then you charge no GST, and your bill must not show any. Once registered, the rates above apply from your registration date.

How OdaBookings handles it

Each night gets the right slab, from the price actually charged, after discounts.
The bill splits CGST + SGST (or UTGST) for your state, with a summary for each rate when a stay crosses ₹7,500.
Tax invoices are numbered per financial year (INV/2026-27/00001), with receipt vouchers, credit notes and debit notes. When you are not registered, or registered under composition, the bill carries no GST.
Every invoice prints your letterhead, the guest's GSTIN when given, the SAC, the place of supply, the amount in words, and your signature and stamp.
GSTR-1 files for the GST Offline Tool and a Tally export go to your accountant.

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General information as of October 2026, not tax advice. GST rates and rules change; confirm the treatment of your own rooms and packages with your chartered accountant.