Revised GST Rates for Hotels and Restaurants Effective From April 2025

The Ministry of Finance, via Notification No. 05/2025-Central Tax (Rate), revises GST rules for hotels and restaurants, effective from April 1, 2025, removing the “declared tariff” definition and linking GST rates to prior-year accommodation charges.

GST for restaurant services is 18% with Input Tax Credit (ITC) if hotel rooms exceed ₹7,500 per day and 5% without ITC otherwise.

Hotels can choose 18% GST with ITC by filing declarations before the financial year or during registration.

"Opt-in" and "opt-out" declarations must be submitted by January 31 or within 15 days for new taxpayers, simplifying the hospitality tax system.