From Sept 22, 5% GST to apply on budget hotel stays, ITC option removed

If you are planning a holiday this festive season or running a hotel business, a key tax clarification issued by the Central Board of Indirect Taxes and Customs (CBIC) could impact your bill. Effective September 22, 2025, hotel accommodation priced up to ₹7,500 per room per day will attract a 5% Goods and Services Tax (GST) rate — but without the benefit of input tax credit (ITC). In its latest cl…