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)
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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)
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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)
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29 September 2025 Good luck..

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