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On July 1, was clutching it seats as the GST was going to be implemented. We wrote about the effect of GST on your Indian Travel back then. 

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However, there is a massive difference in the way GST is being implemented from the provided guidelines. Different brands are approaching GST differently. Normally, in simpler rules, if your hotel room is under Rs 7500, then technically you are supposed to pay 18% GST while if it is higher than it is 28% GST. 

However, many hotels are still charging 28% GST as a reason for the rack rates. As per their words, even if single room in the hotel is above Rs 7500, the entire hotel comes under 28% GST. 

Legal Answer

The hotel is to charge GST on announced Rack Rate aka any rate they decide to declare on a particular day would apply.  Though technically you are staying at the hotel under Rs 7500 but you would still have to shell out 28% GST because hotels are declaring higher walk-in rates by a standard. 

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Cody is a native of city Indore, Madhya Pradesh. He acquired a degree in Engineering (IT) from Rajeev Gandhi Technical University, Bhopal. He had a keen interest in the field of networking and network security and took various courses such as OWASP, EC Council’s Certified Ethical Hacker (CEH), Cisco Certified Internet Expert (CCIE) Routing and Switching. After finishing his education, he joined up corporates to establish his career as IT Tester and Auditor. He moved up to become IT consultant and shared his expertise with IT industries. Cody loves traveling and socializing. He has traveled over 30 countries in the past two years. He enjoys flying business class and staying in 5-star hotels. He has been featured in multiple publications such as Times of India, Dainik Bhaskar, magazines such as Men’s Health. He was invited to inspire people on a platform such as TEDx.


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