Goods and service tax (GST) seems to be very beneficial for common people because tax has been exempted up to specific limit on certain goods and services.

Rent paid by patients for hospital rooms will be exempted from the Goods and Services Tax (GST). The Central Board of Excise and Customs (CBEC) clarified that the tax on rooms in the hotel, guest house or inns will be payable on the actual amount charged and not on declared or published tariff. Declared or published tariff is relevant only for the determination of the tax rate slab.

GST rate

GST Rate


No gst

Less than Rs1000

12 %

Rs 1000 and above – less than Rs 2500


Rs 2500 and above- less than Rs 7500


Rs 7500 and above

GST rate determination as per Declared Tariff

  • GST rate would be determined according to the declared tariff for the room, and GST at the rate so determined will be levied on the entire amount charged from the customs.
  • If declared tariff of the accommodation provided by way of an upgrade is Rs 10,000 but amount charged is Rs 7,000, then GST would be levied at the rate of 28 per cent on Rs 7,000 
    Tariff declared anywhere, like on websites through which business is being procured or printed on tariff card or displayed at the reception, will be the declared tariff. 

    In case different tariff is declared at different places, highest of such declared tariffs shall be the declared tariff for the purpose of levy of GST.

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