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Isgt on hotel sale

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gaddala ramesh

138 Points Posted on 20 July 2023

can we charge igst on hotel sale bill, pls suggest

Replies (4)

Quick Summary

This discussion clarifies whether IGST applies to hotel sales when the transaction spans two different states. It explains that according to place of supply provisions for hotels, the location of the hotel itself determines the tax. Therefore, hotels should charge CGST and SGST, even if the customer is registered in another state or is located in a Special Economic Zone.

sabyasachi mukherjee

Profession

19978 Points Posted on 20 July 2023

If the sale occurs between two states.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

11027 Points Posted on 21 July 2023

For hotel, place of supply provisions apply according to which place of supply is the state where the hotel is situated. Accordingly hotel shall charge CGST and SGST even in case of service to a person registered in another state.

gaddala ramesh

138 Points Posted on 27 July 2023

Even if the customer covered under sez (special economic zone) also cgst and sgst right ?

Aashok Kumar Sharma

Finance/Compliance Consultant

75642 Points Posted on 08 November 2026

IGST on hotel bills:
• Place of supply for hotel accommodation is the location of the hotel (Sec 12(3)(b) IGST). Since the supplier (hotel) and the place of supply are in the same State, it's an intra-State supply (CGST + SGST), even for out-of-State guests or registered businesses from other States.
• So IGST can't be charged on hotel accommodation (except supplies to SEZ units, which are inter-State and zero-rated).