As of September 22, 2025, the GST rate for resorts in India is 5% (without Input Tax Credit) for room tariffs up to ₹7,500 per night, reduced from 12%. For luxury resorts with room tariffs exceeding ₹7,500 per night, the GST rate remains at 18%.
GST on hotel rooms is reduced from 12% to 5% for tariffs up to ₹7,500 per day, effective 22nd September 2025. No ITC is allowed at 5%, so hotels with both budget and premium rooms must carefully manage their tax credits. Rooms priced above Rs. 7,500 will continue to attract 18% GST, and ITC is fully available here.
Compliance & Procedural Changes
From April 1, 2025, Input Service Distributor (ISD) registration will be compulsory for businesses having multiple Goods & Services Tax Identification Numbers (GSTINs). The time limit for the validity of an E-Way bill will be 180 days, and it can be extended to 360 days.
The GST rate for business and premium class air travel has increased from 12% to 18%, effective 22 September 2025, raising ticket costs for these services.
GST 2.0 introduced a simplified two-slab system for hotel rooms: For Rooms less than or equal INR 7,500 per night: GST Rate: 5% (down from 12%) ITC Availability: Not allowed.
Ans. For travellers flying on Economy class tickets, a GST rate of 5% will be applicable on international travel. On the other hand, the applicable GST rate is 12% for Business and Premium Economy class fliers.
Starting September 22, 2025, GST in India will be simplified to primarily two rates: 5% and 18%, with a special 40% rate on luxury and sin goods like tobacco and high-end vehicles. Many essentials, including certain medicines and foods, are now zero-rated, while several items see reduced rates.
Good news is, Starting July 2025, the HST/GST credit has increase by 2.7%, helping low- and modest-income households stretch their budgets. This tax free quarterly payment can put hundreds of extra dollars into your pocket each year.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
The new rate eliminates the cess but increases the GST percentage so that tax collection stays balanced. Hotels costing more than ₹7,500 per night qualify as luxury hotels. GST on luxury hotels, service apartments, five-star resorts, and villas still stands at 18% GST.
Hotels, Motels, and Serviced Apartments
These are subject to 10% GST. Operators must issue tax invoices and include GST in the advertised prices. Even if you provide package deals (e.g., room plus breakfast), the entire amount is typically subject to GST unless individual components are GST-free.
How to calculate GST percentage? There are different slabs for GST i.e. 5%, 12%, 18% and 28%. For instance, if a goods or services is sold at Rs. 1,000 and the GST rate applicable is 12%, then the net price calculated will be = 1,000+ (1,000X(12/100)) = 1,000+120 = Rs. 1,120.
GST is applied to most goods and services, including hotel accommodations, dining, and additional services. GST Rate: As of 2024, the GST rate is 9%. This tax applies to the following: Room Rates: GST is added to the rate charged for hotel rooms, making it essential for hotels to include this in their pricing model.
In order to qualify for this, you have to have worked in 2023 and had an income below $150,000. You also qualify if you received Employment Insurance, paid EI premiums or made CPP contributions. You should receive this via cheque or direct deposit by April 2025.
The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment for individuals and families with low and modest incomes to help offset the GST or HST they pay. It may also include payments from provincial and territorial programs.
Here's what you need to know about the relevant threshold and how it affects your business or enterprise. The GST threshold for 2025 is $75,000 in annual GST turnover for most businesses. If your GST turnover exceeds this amount in any rolling 12-month period, you must register for GST within 21 days.
The CRA will make these payments on the 5th day of July and October 2025, and of January and April 2026.
Demonstrating a sustainable financial momentum, India's GST collection for September 2025 soars to ₹1.89 lakh Crore, depicting a 9.1% YoY rise.
2022, Works contract services provided to Central and State Government, or Local Authorities, which were earlier eligible for concessional rate of 12% GST,would attract GST at the rate of 18% in view of amendment carried out in notification No. 11/2017- Central Tax (Rate) vide notification No.
For now, the tours and travels GST rate stays the same: 5% for domestic tour companies (without ITC) and 18% for those who choose to claim an ITC.
A significant number of international travel and transport services are GST-free under Australian law. For example: International flights and voyages, including those commencing or terminating overseas.