My Hotel Room Is ₹7,400 — Is That 5% or 18% GST?
GSTZone Desk · Updated 2026
Short answer
5% — a room priced at ₹7,400 per day sits below the ₹7,500 threshold, so it falls into the lower bracket. Just ₹100 more, at ₹7,500 or above, would push the entire room into the 18% bracket instead.
In detail
The rate reset introduced a genuinely simple, hard cut-off: rooms priced at ₹7,500 per unit per day or below are taxed at 5%; anything above that figure moves to 18%. There’s no gradual scaling — it’s a single threshold, and ₹7,400 sits comfortably under it.
This is a good illustration of how precise this rule is in practice — a hotel pricing a room at exactly ₹7,500 versus ₹7,501 sees a jump from 5% to 18% GST on that one rupee of difference, which is why many hotels deliberately price rooms just under or well above this line rather than right at the edge.
Remember this rate is also linked to the following year’s ‘specified premises’ classification for that hotel — so a hotel with rooms consistently priced above ₹7,500 this year is likely to see its restaurant also move to 18% next year, as covered elsewhere in this series.
GSTZone tip
If you’re booking a room close to this line, check the ACTUAL price on your specific invoice, including any taxes-inclusive display pricing versus the base rate — the ₹7,500 test applies to the value of supply charged for that unit that day, not a hotel’s generic listed rate.
Related questions
Does a seasonal price surge above ₹7,500 change the rate just for those dates?+
Yes, generally — the rate follows the actual price charged for that specific booking, so a genuine seasonal surge above ₹7,500 would move that specific booking into the 18% bracket for those dates.
Is GST charged on the room price alone, or does it include extras like breakfast?+
If breakfast or other services are bundled into a single package price, the combined value is typically what’s tested against the ₹7,500 threshold, since it’s treated as part of the overall accommodation supply.
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