Hotel GST Calculator
Find the GST slab, CGST/SGST split and total bill for any hotel room tariff in India — updated for the 5% and 18% slabs.
How GST on hotel rooms works in India
GST on hotel accommodation depends on the value of the room per unit per night. From 22 September 2025, rooms with a value up to ₹7,500 per night attract 5% GST without input tax credit (ITC), and rooms above ₹7,500 per night attract 18% GST with ITC. The slab is decided on the actual transaction value after any discount — not on the published rack rate.
| Room value per night | GST rate | Input tax credit |
|---|---|---|
| Up to ₹7,500 | 5% (2.5% CGST + 2.5% SGST) | Not available |
| Above ₹7,500 | 18% (9% CGST + 9% SGST) | Available, subject to conditions |
For example, a room sold at ₹4,500 per night for two nights has a taxable value of ₹9,000 and GST of ₹450 at 5%, so the guest pays ₹9,450. A suite sold at ₹9,000 per night falls in the 18% slab: GST is ₹1,620 per night.
How to use this hotel GST calculator
- Enter the room tariff per night and choose whether it already includes GST.
- Add any discount given on the bill — the slab is decided after the discount.
- Enter the number of rooms and nights.
- Choose same-state (CGST + SGST) or different-state (IGST) supply.
- Click Calculate GST to see the slab, the tax split and the total bill.
Pricing tips around the ₹7,500 threshold
The jump from 5% to 18% means a room priced just above ₹7,500 can cost the guest noticeably more than one priced just below it. Many hotels review their rate ladder so that popular room types sit on the right side of the threshold, while premium rooms clearly justify the higher tax. If you sell on OTAs, check how each channel displays taxes so guests compare like with like. For a full pricing strategy, read our guide to hotel dynamic pricing or use the hotel room rate calculator.
This calculator gives an estimate for planning. GST rules can change and special cases exist (for example composite supplies, restaurant services in hotels and exempt categories), so confirm the final treatment with your chartered accountant.
Frequently asked questions
What is the GST rate on hotel rooms in India?
From 22 September 2025, hotel rooms with a value 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 value is the actual tariff charged per unit per night after discounts.
Are hotel rooms below ₹1,000 exempt from GST?
No. Under the current structure, rooms up to ₹7,500 per night, including those priced at ₹1,000 or less, are taxed at 5% without input tax credit. Earlier exemptions for low-tariff rooms no longer apply.
Is GST calculated on the rack rate or the actual price?
GST and the applicable slab are based on the actual transaction value per room per night after any eligible discount, not the published rack rate.
How is GST split into CGST and SGST?
For a stay in the same state as the hotel's registration, GST is split equally: 2.5% CGST and 2.5% SGST at the 5% slab, or 9% each at the 18% slab. IGST applies to inter-state supplies.
Does this calculator replace advice from a CA?
No. It is a free planning tool. Tax rules change and special cases exist, so always confirm invoices and filings with your chartered accountant.
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