GST Billing Framework for Hotel / Resort with Restaurant: Key

When reading GST Billing Framework for Hotel / Resort with Restaurant: Key, the important part is to keep the core facts intact while presenting the context in a clearer way for readers.

What This Update Means

Readers should treat this as a tax and compliance update, not as personal advice.

Key Reader Takeaways

• The issue was classification of bundled hotel services under GST.
• It is clarified that naturally bundled services are taxed as composite supply, while others attract the highest…
• The GST billing framework for hotels and resorts classified as specified premises outlines the tax treatment of various bundled and standalone services following the September 2025 amendment.
• Accommodation is taxed at 5% without input tax credit (ITC) for lower-value rooms and 18% with ITC for higher-value rooms, while services like restaurant, room service, catering, banquet, and spa attract 18% with ITC.

LAMORC DIGITAL Context

The detailed section below preserves the source-backed information so readers can review the full context and important details in one place.

The GST billing framework for hotels and resorts classified as specified premises outlines the tax treatment of various bundled and standalone services following the September 2025 amendment. Accommodation is taxed at 5% without input tax credit (ITC) for lower-value rooms and 18% with ITC for higher-value rooms, while services like restaurant, room service, catering, banquet, and spa attract 18% with ITC. The distinction between composite and mixed supply under the CGST Act, 2017 is critical: naturally bundled services such as room with breakfast or meal plans are treated as composite supplies and taxed based on the principal supply (accommodation), whereas unrelated bundled services at a single price are treated as mixed supply and taxed at the highest rate. Separate billing applies where services like food are availed independently. The framework also clarifies taxation for scenarios such as banquet bookings, wedding packages, corporate packages, and ancillary services, ensuring structured compliance and reducing classification disputes.

Current GST Rate Structure (Post Amendment dated 22 nd September 2025) –

Composite v. Mixed Supply (Statutory Position)

Composite Supply (Sec 2(30) + Sec 8)

Mixed Supply (Sec 2(74))

Scenario Analysis specific use cases for Hotel/Resort with Restaurant as specified premises:

Scenario 1: Room + Breakfast Included (One price with everything included in tariff)

Scenario 2: MAP / AP Plans (Stay + Meals)

Scenario 3: Room + Food Separately Charged

Applicable where guest booked only accommodation earlier but once at the premise wants to have food also at the Hotel

Scenario 4: Room + Breakfast Included + Room Service availed (Lunch + Dinner)

(Initial single price with Breakfast included in tariff but Lunch and dinner were ordered later)

Lunch and Dinner are ordered separately in Room (as no prior information or price was available earlier) these would be taxable at 18%, SAC Code: 996332 – for room service

Scenario 5: Room + Breakfast Included + Lunch and Dinner at Restaurant

(Initial single price with Breakfast included in tariff but Lunch and dinner were later had at restaurant)

Since guest had Lunch and Dinner at Restaurant these are separate service and the guest would be taxable at 18% which is the rate for Restaurant with SAC code of 996331

Scenario 6: Banquet + Catering

Scenario 7: Banquet (without food)

Let us say a corporate event/ meeting without food or food ordered on a la-carte basis

Scenario 8: Wedding Package

Tax: Highest rate → 18%

Scenario 9: Pool / Spa

Scenario 9: Ground / Lawn Renting (in isolation)

Scenario 10: Corporate Package

Single price given to corporate:

Risk of classification dispute

Separate quote to Corporate and separate billing (recommended):

Scenario 11: Miscellaneous Services

For any other queries please reach out to us- Agarwal Sanjiv & Company, Chartered Accountants, 503, Gurukripa Tower, C-43, Mahaveer Marg, C-Scheme, Jaipur-302001, Phone: 0141-2368071, Mob. 8588831124

Readers should treat this as a tax and compliance update, not as personal advice.

This article is for general information based on available source information. It should not be considered legal, tax, investment, or financial advice.