GST rate on hotel

5% without ITC.             

For restaurant service in a hotel, the usual GST rate is 5% without input tax credit (ITC). If the hotel’s room tariff for any unit was ₹7,500 or more per day in the preceding financial year, restaurant service is generally taxed at 18% with ITC. The threshold relates to room tariff—not the meal price—and the 18% rate applies to the hotel’s restaurant service, not only meals served to guests in those higher-tariff rooms. A standalone small hotel’s restaurant service is generally at 5% without ITC.

For hotel meal billing, verify the restaurant-service classification and the hotel’s preceding-year room tariffs before configuring the rate and ITC treatment. Manual rate checks across outlets and invoices are difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. WhatsApp us to explore the workflow: https://wa.me/message/3HVOZ7HIY4ESC1