A hotel room invoice taxes accommodation under SAC 996311 at 5% without input tax credit where the value of supply of a room is up to Rs 7,500 per unit per day, and at 18% with credit above that. The folio should show the room number and category, check-in and check-out dates, per-night tariff actually charged, extra bed charges, food and minibar under the correct restaurant code, and the guest's GSTIN when a company is paying.
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Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a hotel invoice needs
Room number and category
The category explains the tariff and helps the guest compare the bill with the booking confirmation, which is the first thing corporate travel desks check before approving payment.
Check-in and check-out dates and nights
GST on rooms is decided per unit per day, so the number of nights and the rate for each night must be visible. Different nightly rates, such as weekend pricing, should appear on separate lines.
Tariff actually charged per night
The rate slab depends on the value of supply, not the rack rate. Showing the discounted tariff actually charged proves why 5% or 18% was applied.
Booking source
Rooms sold through an online travel agent may be taxed in the hands of the platform under section 9(5) in some cases. Recording the source helps decide who pays the GST on that stay.
Guest company GSTIN
A company paying for a business stay needs its GSTIN, legal name and address on the invoice. The place-of-supply rules for accommodation look at where the hotel is, so CGST and SGST normally apply even for out-of-state companies.
Food and beverage folio
Restaurant and room-service charges carry their own SAC and rate. Keeping them in a separate block avoids applying the room rate to meals or vice versa.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
From 22 September 2025, hotel accommodation where the value of supply of a unit is Rs 7,500 or less per day is taxed at 5% without input tax credit, down from 12% with credit. Above Rs 7,500, the rate is 18% with credit. The test applies to the amount actually charged for the room per day, so a room listed at Rs 9,000 but sold at Rs 7,200 after a discount falls in the 5% slab. Extra bed charges generally form part of the room value, so add them when testing the threshold.
Restaurant tax depends on the hotel's tariff
A hotel's restaurant and room service are restaurant services under SAC 996332. If the hotel is specified premises, meaning it charged more than Rs 7,500 for any unit of accommodation in the previous financial year or declared itself as such, its restaurant charges 18% with credit. Otherwise the restaurant charges 5% without credit. The September 2025 clarification links specified premises to places where hotel accommodation is supplied, so a stand-alone restaurant next door cannot borrow this status.
Laundry and other extras
Laundry, spa and business-centre services billed to a guest are independent services with their own codes. Laundry and dry cleaning fall under 9997 and carry 18% under Notification 15/2025-Central Tax (Rate). Where these are bundled into a package with the room, decide whether the bundle is a composite supply whose principal supply is accommodation, and document the decision in your tariff card.
E-invoicing for corporate bills
Hotels are not among the categories exempted from e-invoicing. If your aggregate turnover in any previous year crossed the notified limit, invoices to registered companies must be reported to the invoice registration portal and carry an IRN and QR code. Bills to walk-in tourists who do not provide a GSTIN remain ordinary B2C invoices.
Common billing mistakes
✕Applying 18% to a room sold at Rs 6,500 because the published rack rate is above Rs 7,500.
✕Continuing to charge 12% with credit on budget rooms after 22 September 2025, when the rate became 5% without credit.
✕Taxing room service at the room rate instead of at the restaurant rate that applies to the hotel's food and beverage outlets.
✕Issuing the room invoice with the travel agent's name instead of the company that stayed and paid.
Hotel GST invoice: FAQ
What GST rate applies to a hotel room of Rs 7,500 per night?
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A room whose value of supply is exactly Rs 7,500 or less per day is taxed at 5% without input tax credit. Only rooms charged above Rs 7,500 per day attract 18% with credit.
Can a budget hotel still claim input tax credit?
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No, not on rooms taxed at 5%. That rate is conditional on not taking credit on inputs used to supply the accommodation. Common credits must be reversed in proportion where the hotel also makes supplies at 18%.
Is a hotel's restaurant taxed at 5% or 18%?
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It depends on whether the hotel is specified premises. If any unit was charged above Rs 7,500 a day in the previous year, or the hotel declared itself as specified premises, the restaurant charges 18% with credit; otherwise 5% without credit.
Do I charge IGST to a guest from another state?
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Generally no. The place of supply for accommodation is the location of the hotel, so CGST and SGST apply even when the guest or paying company is registered in another state.