GST Rate on Restaurant Service

This query is : Resolved

Sumit Mondal (Querist)
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27 March 2025 As per the recent Notification No. 08/2025 and Notification No. 05/2025, is a hotel mandatorily required to charge 18% GST on restaurant services if it had any room bookings with a tariff exceeding Rs. 7,500 per day in the previous financial year? Does the hotel have the option to charge 5% GST on restaurant services without ITC, even if it had room tariffs exceeding Rs. 7,500 per day in the previous year?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 March 2025 1. Yes, if a hotel had room bookings exceeding ₹7,500 per day in the previous financial year, it will be considered a "specified premise" for the current financial year. This means that, without an opt out declaration, the hotel will be required to charge 18% GST on its restaurant services.
2. No.