GST depends on the declared room tariff per night.
New (since 22 Sep 2025):
Room tariff up to ₹7,500 → 5% GST, no ITC.
Room tariff above ₹7,500 → 18% GST, ITC allowed.
Hostels / Paying Guest (PG) Accommodation
For PGs or hostels: if stay is < 90 days OR rent > ₹20,000/month (per person) → 12% GST applies.
For long-term stays (≥ 90 days) with rent ≤ ₹20,000/month/person → no GST.
Also, as per a recent CBIC notification: accommodation services (PG / hostel) are exempt when the value is ≤ ₹20,000 per person per month and the stay is for a continuous 90 days or more.
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