Food and hospitality
A lodge or budget hotel supplies accommodation under SAC 996311. From 22 September 2025, all rooms with a value up to Rs 7,500 per unit per day carry 5% GST without input tax credit, down from 12%. Lodges often let rooms for part days or sell dormitory beds, so the bill should show room or bed, check-in and check-out times, the charge basis, extra person charges, and the guest's company GSTIN where a business traveller wants a tax invoice.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Non-AC double room, 1 day | 996311 | 1 DAY | 900.00 | 900.00 | 5% |
| AC double room, 2 days | 996311 | 2 DAY | 1,600.00 | 3,200.00 | 5% |
| Dormitory bed, 3 days | 996322 | 3 BED | 350.00 | 1,050.00 | 5% |
| Extra person charge | 996311 | 2 DAY | 300.00 | 600.00 | 5% |
| Taxable value | ₹5,750.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹287.50 | ||||
| Invoice total | ₹6,037.50 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: GST Rates and Slabs in India: The Current Structure Explained · Billing for Service Businesses: Models, GST and Best Practice · Mandatory Fields in a GST Invoice: The Complete Rule 46 Checklist
The Council's reduction of the rate for hotel accommodation up to Rs 7,500 per unit per day to 5% without credit applies to every budget room, whatever the price. There is no separate lower or nil band for very cheap rooms, so a Rs 900 non-AC room carries the same 5% as a Rs 7,000 room, once the lodge is registered.
Dormitory beds in hostels and lodges are classified under SAC 996322 for accommodation in hostels, camps and similar places. Each bed is a unit, and for GST the value per unit per day is the bed rate. Bill dorm beds separately from private rooms so that the unit and per-day value are clear.
Some lodges let rooms for a few hours. The rate test is per unit per day or equivalent, so a short let is still compared with the daily threshold. Show the hours on the bill and charge 5% on the amount. Keep part-day lets in the register with times, as these are the stays most often questioned.
At 5% without credit, the lodge cannot claim GST on furniture, air conditioners, linen or repairs used for rooms. If the lodge also runs a business taxed with credit, such as renting shop space at 18%, common credits must be apportioned and only the eligible share claimed.
A lodge supplying through booking platforms while not liable to register may have tax paid by the platform under section 9(5). Once liable to register, it pays tax on all bookings. Count platform bookings, direct bookings and any other income in aggregate turnover.
Many lodges run a small restaurant on the ground floor. Since no room crosses Rs 7,500, the lodge is not specified premises, and its restaurant charges 5% without credit. Room service of meals is part of that restaurant service. Keep the restaurant bill series separate from the room bill series, or at least use separate sections, so that accommodation and food service are reported under their own codes.
5% without input tax credit, the same as any room up to Rs 7,500 per day.
There is no separate exemption for low-priced hotel rooms; all rooms up to Rs 7,500 per unit per day are at 5%.
As accommodation per bed per day, under SAC 996322, at 5% without credit.
No. An unregistered lodge must not charge GST.
Yes, at the same 5% on the amount charged, with times recorded on the bill.
No. Place of supply for accommodation is where the lodge is located, so CGST and SGST apply.
Yes, if each is shown on its own line with its own SAC and rate, so the accommodation and food service can be reported separately.
Keep it as a liability until it is adjusted or refunded. If the lodge retains part of a deposit for damage or late checkout, bill that amount with GST and adjust the deposit against it.
No. The amount charged for the hours is compared with the daily threshold and taxed at 5% like any other room charge.
Sources: GST Council — Press release, 56th GST Council recommendations (Sept 2025) · GST Council — FAQs on decisions of the 56th GST Council · CBIC — Central Tax (Rate) notifications incl. 15/2025-CT(Rate)
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