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.
chatCommentsMr. 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 KIMPlease suggest us - LIM KIMTax rate is revised. Upto 7500 its 12% - Pulkit SharmaThanks. - LIM KIMWe 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