GST changes for India

The Indian GST Council has announced a reduction in the GST rate on hotel accommodation.

Up until now, the below rates were in existence:

• GST rate for room tariffs under INR 7,500 was 18%
• GST rate for room tariffs over INR 7,500 was 28%

 

GST amendments for India February 2019

• GST rate for room tariffs under INR 1,000 is 0%
• GST rate for room tariffs between INR 1,000 and INR 7,500 is now 12%
• GST rate for room tariffs over INR 7,500 is now 18%

It is hoped that this reduction in rates will lead to a boost in tourism.