- The Ministry of Finance has confirmed that hotel rooms with rates up to Rs 7,500 will be taxed at 5% GST without input tax credit (ITC). The option to pay 18% GST with ITC is not available for these rooms. Previously, these rooms were taxed at 12% with ITC. The Hotel Association of India and the Federation of Associations in Indian Tourism and Hospitality have expressed concerns about the impact on hotel costs and are advocating for ITC inclusion in the 5% tax slab.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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