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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 travel consultant and full-time traveler from India. He holds a deep background in Network and Network Security. Something that enabled him to develop the hacker mindset. He uses his hacker mindset to travel Luxuriously and to stay in suites in 5-star hotels and resorts and fly business or first class at very economical prices by applying various travel hacks to enrich his and his client's life. He helps people maximizing their travel portfolio. He believes that your current travel should reward your future travels. Cody initially traveled as a backpacker and stayed in modest locations and over the period has improved his life by using all his travel hacks to stay in top-end luxury locations across the world. Cody has traveled over 60 countries in last 5 years. Cody is a blogger, motivator, storyteller, travel consultant and a life coach. 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. He has trained over 100s of people achieve their lifestyle goals.

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