Guide · Hotel GST

Hotel GST, worked out per room, per night.

The GST slabs for rooms, why the rate depends on each room-night and not the booking total, and how Host Labs PMS puts it all on a correct tax invoice.

A GST tax invoice in Host Labs PMS with the slab per room-night, SAC codes, CGST and SGST

GST rates for hotel and homestay rooms

From 22 September 2025, GST on a hotel or homestay room in India depends on the value of one room for one night: up to ₹1,000 is exempt, above ₹1,000 and up to ₹7,500 is 5%, and above ₹7,500 is 18%.

The 5% rate comes without input tax credit; the 18% rate allows it.

GST on accommodation, by value per room per night before GST
Value per room per night	GST	On the invoice
Up to ₹1,000	Nil (exempt)	No GST
Above ₹1,000, up to ₹7,500	5%	2.5% CGST + 2.5% SGST
Above ₹7,500	18%	9% CGST + 9% SGST

The slab is decided per room, per night

The rate is set by the value of each room for each night, never by the booking total.

Three rooms booked together for ₹8,000 a night, GST included, are ₹2,666.67 per room: the 5% slab. Software that looks at the booking total would see ₹8,000 and charge 18%. Host Labs PMS bills that night as ₹7,619.05 before GST, ₹190.48 CGST and ₹190.47 SGST.

CGST and SGST, not IGST

A room is supplied where the property is, so a stay is taxed as CGST plus SGST in your state, even when the guest or their company is from another state.

Food, extra beds and other services

Food and drinks served at a property whose rooms are ₹7,500 a night or less are taxed at 5%. An extra bed is part of the room's value, so it counts toward the room's slab. Host Labs PMS uses 18% for other services by default.

Prices that already include GST

Most homestays quote prices with GST included, so the value before GST is worked out from the price, and the slab from that value.

₹9,440 a night including GST is ₹8,000 before GST: 18%, which is ₹720 CGST and ₹720 SGST.
₹3,150 a night including GST is ₹3,000 before GST: 5%, which is ₹75 CGST and ₹75 SGST.
A price from ₹7,875 to ₹8,850 including GST fits neither slab exactly: at 5% it is above ₹7,500 before GST, at 18% below it. Host Labs PMS applies 18% and flags the booking so you can adjust the price.

Bookings from OTAs

OTA bookings arrive with the price before tax and the GST the OTA added. Host Labs PMS uses the OTA's own price before tax to choose the slab, and shows both on the bill and the invoice.

What a GST invoice for a stay shows

A tax invoice for a stay shows your GSTIN, a unique number in a financial-year series, the SAC code of each line, and the taxable value with CGST and SGST for each rate.

SAC 996311 for room accommodation and 996331 for food and drinks
Invoice numbers such as HL/26-27/0001, starting again each financial year
The guest's GSTIN and legal name for a business guest
The total in words
Taxable value, CGST and SGST for each rate

Keeping the books

The Invoices screen lists every invoice with a GST summary by rate and the stays still waiting for an invoice, and exports an invoice register and a GST-by-rate sheet for your accountant.

Questions

Is GST charged on a room under ₹1,000 a night?

No. A room worth up to ₹1,000 per night is exempt.

What is the GST on a ₹5,000 room?

5%. On ₹5,000 before GST that is ₹250: ₹125 CGST and ₹125 SGST.

What is the GST on food at a homestay or hotel?

5% where the rooms are ₹7,500 a night or less.

Is GST on a group booking worked out on the total?

No. It is worked out per room per night: four rooms at ₹2,500 a night are 5%, even though the booking comes to ₹10,000 a night.

Do I charge IGST to a guest from another state?

No. Accommodation is taxed where the property is, so it is CGST plus SGST.

Can I change the rates in Host Labs PMS?

Yes. The room slabs and the food and service rates are in Settings; confirm the rates that apply to you with your CA.

This guide explains how Host Labs PMS applies GST, with the rates in force from 22 September 2025. It is not tax advice: confirm the rates that apply to your property with your CA. Every rate can be changed in Settings.