Gst Rate On Guest House


LIM KIM
watch_later 1 year, 6 months ago

Dear Sir,

My question to you that what will be the GST rate applicable on guest house ? Currently, as we are including service tax 8.40 % in our invoice. Please suggest me briefly. Will any charges be applicable on that like swatch bharat cess & krishi kalyan cess. Please reply.

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1 Answer

Pulkit Sharma watch_later 1 year, 6 months ago
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From July 1, you have to charge 12% GST on room rent. Full input credit on expenses incurred is available.

For rooms with rent below 1,000 charge, tax is exempted.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day, GST rate of tax is 12% with full ITC.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/ and above but less than Rs 7500/- per room per day then GST rate is 18% with full ITC.

There is no cess under GST on services as of now.

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    Mr. Sharma, Thanks for reply but we have a question that as our room charges below 7500 but above 5500, so in that case GST rate will be 18 %. Isn't it ? - LIM KIM
    Please suggest us - LIM KIM
    Tax rate is revised. Upto 7500 its 12% - Pulkit Sharma
    Thanks. - LIM KIM
    We have altogether 9 rooms in 3 interconnected flats. We are willing to convert it into guesthouse through airbnb. In such case, how much GST will be applicable for renting 9 room for a period between 1 to 28 days - Nikita Kiran
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