GST for hospitality, hotels and travel
Accommodation tariffs decide the rate, the restaurant treatment and the credit position all at once.
Hospitality exposure sits in the accommodation rate entries and the specified premises threshold which determines whether an in house restaurant is taxed at the concessional rate without credit or the standard rate with credit, the bundling of accommodation with food, transport and event services, the place of supply which follows the property, banquet and event services, and the platform question where bookings come through an electronic commerce operator.
Accommodation and the specified premises question
The accommodation rate entries turn on the value of supply of the unit, and the exemption or concession for lower tariff units must be verified for the period.
Where accommodation exceeds the notified threshold, the premises may be specified premises, which takes the in house restaurant out of the concessional rate and into the standard rate with credit. The declaration mechanism must be followed.
The threshold is computed on the value of the accommodation supply, so a hotel with a wide tariff range must monitor it and cannot assume a single answer for the year.
The credit consequence is significant: the concessional restaurant rate carries no credit, while the standard rate does, and the procurement pricing should reflect the position.
Bundles, events and platforms
Room with breakfast, room with dinner, and package rates are composite supplies with accommodation as the principal supply. Room with a conference, a banquet or an event may not be.
Banquet and event services, including food, decoration and audio visual, are typically a single composite supply, and the rate follows the principal supply. Document the analysis.
Place of supply for accommodation and property related services follows the location of the property, which matters for a chain with a central booking entity.
Bookings through an electronic commerce operator raise the Section 9(5) question for specified services and the TCS question for others. Reconcile the operator's reporting monthly.
Travel agency and tour operator services have their own entries and their own valuation mechanisms, and the distinction between acting as a principal and as an agent decides the treatment.
The controls
A monthly tariff monitoring report against the specified premises threshold, with the prescribed declaration filed where required.
Point of sale segregation between accommodation, restaurant, banquet and other services.
A composite supply note for every package and event format.
Monthly reconciliation of platform bookings and their Section 9(5) or TCS treatment.
What to do on Monday
Monitor tariffs monthly against the specified premises threshold and file the prescribed declaration.
Segregate point of sale data by service line from the system level.
Write a composite supply note for every package and event format.
Reconcile platform bookings and their tax treatment monthly.
This page states the general position. A reader with a specific question on their own facts may write to the GST practice at AMLEGALS.
Write to the GST practiceQuestions we are asked on this
What are specified premises?
Premises where the accommodation supply exceeds the notified threshold, in which case the in house restaurant is taxed at the standard rate with credit. Verify the threshold and declaration mechanism.
Is room with breakfast a composite supply?
Yes, with accommodation as the principal supply.
Where is the place of supply for a hotel stay?
The location of the property, whatever the booking entity's location.
Who pays on platform bookings?
It depends on whether the service is notified under Section 9(5). Reconcile the operator's reporting monthly.
Is credit available on restaurant inputs?
Under the concessional rate, no. Under the standard rate applicable at specified premises, yes.
In this cluster
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- GST for automotive and auto components
- GST for textiles and apparel
- GST for IT, SaaS and software exports
- GST for logistics, warehousing and transport
- GST for banking, NBFC and financial services
- GST for insurance after the individual policy exemption
- GST for education and edtech
- GST for healthcare and hospitals
GST Insights is published by AMLEGALS for general information. Law stated as on 3 September 2026. Not advice on any particular set of facts; not an advertisement or a solicitation under Rule 36 of the Bar Council of India Rules. Readers with a question on their own facts may write to the GST practice of their own accord.