India Reduces Hotel Tax Effective October 1, 2019


Hotel taxes and other government collected fees from tourists have been creeping up in many countries and jurisdictions.

India, however, is reversing this trend on October 1, 2019, when GST collected on hotel stays are slashed to 0%, 12% or 18% depending on the price of the room.

Here’s how much the GST tax is:

  • Up To 1,000 INR ($14) per night = 0%
  • 1,001 to 7,500 INR ($14 – $106) per night = 12% (from 18%)
  • Greater than 7,500 INR ($106) per night = 18% (from 28%)

Here’s an excerpt from the Time of India (access their piece here):


There is an other issue with hotel room rates and this GST in India. In certain jurisdictions it is collected based on the RACK RATE of the room and not the actual rate paid. This makes upgrades very expensive and sometimes undesirable.

It is good to see that India is making this tax more reasonable and won’t collect it from the rates (likely) paid by the most domestic budget travelers.

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