GST Rate on Restaurant Service

Save Share

This query is : Resolved

Quick Summary

Recent notifications clarify GST on hotel restaurant services. If a hotel had room tariffs exceeding ₹7,500 per day in the previous financial year, it's considered a 'specified premise'. This typically means an 18% GST rate on restaurant services is mandatory for the current year, unless an opt-out declaration is made. The option to charge 5% GST without Input Tax Credit (ITC) is generally not available in such cases.

Sumit Mondal

Sumit Mondal (Querist)
Follow

27 March 2025 As per the recent Notification No. 08/2025 and Notification No. 05/2025, is a hotel mandatorily required to charge 18% GST on restaurant services if it had any room bookings with a tariff exceeding Rs. 7,500 per day in the previous financial year? Does the hotel have the option to charge 5% GST on restaurant services without ITC, even if it had room tariffs exceeding Rs. 7,500 per day in the previous year?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 March 2025 1. If a hotel had room bookings exceeding ₹7,500 per day in the previous financial year, it will be considered a "specified premise" for the current financial year. This means that, without an opt out declaration, the hotel will be required to charge 18% GST on its restaurant services.
2. No.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

30 September 2025 Good luck....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!