FAQ for GST on Tourism Consumers dated 07-07-2017 - GST Frequently Asked Questions (FAQs) - GST

Q. - What rates will be applicable for accommodation in various hotels/guest houses/inns, etc. in India? Ans. - The GST rates applicable for accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes will depend upon the tariff per unit per day declared by the respective accommodation establishment. The slabs of GST rates applicable are given in the table below : S. No. Declared Tariff (per unit per day) GST rates applicable 1 Less than ₹ 1000 Nil 2 ₹ 1000 and above but less than ₹ 2500 12% 3 ₹ 2500 and above but less than ₹ 7500 18% 4 More than ₹ 7500 28% (Source: Schedule of rates for services, Notification No. 11/2017-Central Tax (Rate), dated June 28th, 2017) Q. - How will the rates be affected if a Hotel/Club etc. provides discount on the declared tariff(s)? Ans. - The GST rates applicable on all accommodation establishments (hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes) depends on the declared tariff per unit per day by the respective establishment. If a discount is provided, then the slab of GST rate applicable (as per table above) will remain the same, however, the rate would be charged on the actual tariff charged. E.g. If a room costs ₹ 10,000/- per day and 40% discount is available on the same, then GST rate of 28% (for tariff of ₹ 7500/- and above) will be applicable on ₹ 6000/- i.e. on the actual tariff charged. Therefore, the actual billing amount will be ₹ 6000/- + (28% of 6000) = ₹ 7680/- Q. - What rates will be applicable for restaurants? Ans. - Supply of Food/Drinks in Restaurants will be charged as per the rates given in the following table : S. No. Description GST rates applicable 1 Food/Drinks in restaurant not having the facility of air conditioning or central heating at any time during the year and not having the license to serve liquor 12% 2 Food/drinks in restaurant having licence to serve liquor 18% 3 Food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year 18% 4 Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel 18% 5 Food/drinks in outdoor catering 18% 6 Food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises 18% 7 All other services not specified elsewhere 18% (Source : Schedule of rates for services, Notification No. 11/2017-Central Tax (Rate), dated June 28th, 2017) Q. - What rates will be applicable for amusement parks? Ans. - For entertainment events and amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as IPL and the likes, GST rate of 28% will be applicable. (Source : Schedule of rates for services, Notification No. 11/2017-Central Tax (Rate), dated June 28th, 2017) Q. - What rates will be applicable for travel by air? Ans. - The GST rates applicable on air tariffs are as below : S. No. Description GST rates applicable 1 Travel by economy class 5% 2 Travel by other than economy class 12% (Source : Schedule of rates for services) Q. - What rates will be applicable for travel by railways/other modes of public transport? Ans. - The GST rates applicable on train tariffs and other public transport services are as below : S. No. Description GST rates applicable 1 Travel by- Nil a. railways other than - i. first class; or ii. an air-conditioned coach; b. metro, monorail or tramway; c. inland waterways; d. public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and e. metered cabs or auto rickshaws (including E-rickshaws) 2 Travel by rail in first class or air conditioned coach 5% (Source : Schedule of rates for services, Notification No. 11/2017-Central Tax (Rate), dated June 28th, 2017) Disclaimer : The information provided above is intended only to provide a general overview and is not intended to be treated as legal advice or opinion. For more details, you are requested to refer to the respective CGST/SGST/UTGST/IGST Acts.