GST (Goods and Services Tax) compliance is crucial for Indian hotels. Understanding how to calculate and apply GST correctly can save you from legal complications and ensure smooth operations.
Understanding GST for Hotels
Hotels in India are subject to GST based on their room tariff. The GST rates vary depending on the room rate:
- Room rate up to ₹1,000: 12% GST
- Room rate ₹1,001 to ₹7,500: 18% GST
- Room rate above ₹7,500: 28% GST
CGST, SGST, and IGST
GST is divided into:
- CGST (Central GST): Collected by the central government
- SGST (State GST): Collected by the state government
- IGST (Integrated GST): Applied for inter-state transactions
Automated GST Calculation
RevNext Channel Manager automatically calculates CGST, SGST, and IGST based on your hotel's location and the guest's location, ensuring full compliance with Indian tax regulations.