GST Rate on Restaurant Service

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This discussion clarifies the Goods and Services Tax (GST) rate applicable to hotel restaurant services. If a hotel's room tariffs exceeded Rs. 7,500 per day in the previous financial year, it is considered a 'specified premise'. Consequently, the hotel is mandatorily required to charge 18% GST on its restaurant services, which includes the benefit of Input Tax Credit (ITC).

Sumit Mondal

Sumit Mondal (Querist)

10 April 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)

11 April 2025 No, the hotel does not have the option to charge 5% GST on restaurant services without Input Tax Credit (ITC) if it had room tariffs exceeding Rs. 7,500 per day in the previous year. Once a hotel qualifies as a "specified premise" based on the previous year's room revenue, the mandatory GST rate for its restaurant services is 18% with ITC.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 September 2025 Good luck..

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