The Managing Directors/CEO's/Owners/Director/Partners/General Managers
All FHRAI Members
CC: All Members of the Executive Committee
All Regional Associations
SUB: NEW GST RATES APPLICABLE ON HOSPITALITY SECTOR
Dear Member,
This has reference to the 47th meeting of GST Council held on 28-29 June 2022, during which the GST Council has decided to amend the GST rates applicable on hospitality sector. Further, on 13.07.2022, the Central Government has issued notifications on the GST rate changes. These changes will be applicable from 18.07.2022.
Placed below the highlights of GST changes for hotel establishments-:
- Earlier hotel rooms with tariff up to INR 1000 per day were exempted from GST. The GST Council has now decided to levy 12% GST on such rooms. Hence, effectively hotel rooms up to INR 7500 per day would now be charged GST of 12%.
- Also, hotel accommodations above INR 7501 per day would continue to charge GST @ 18%.
As mentioned above, the notifications will come into effect from 18.07.2022. So, the members are advised to make necessary changes in their billing system to comply with the GST changes.
With best regards,
Jaison Chacko
Secretary General
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The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com Website: www.fhrai.com