CBIC notifies Changes in GST Rate for Hotels and Restaurant Services w.e.f. 01.04.2025

The Central Board of Indirect Taxes and Customs (CBIC) has notified changes in GST Rate for Hotels and Restaurant Services w.e.f. 01.04.2025.

The notification removes the definition of “declared tariff” and changes the definition of “specified premises.” The updated definition links the GST rate for restaurant services in hotels to the value of hotel accommodations provided the previous financial year.

The Notification Read as Follows:

In exercise of the powers conferred by sub-sections(1), (3),and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification number 11/2017-Central Tax (Rate),of the Government of India, in the Ministry of Finance (Department of Revenue), published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, namely:-

In the said notification,-

(i) in paragraph 4 relating to Explanation, with effect from the 1st day of April, 2025,-

(a) clause (xxxv) shall be omitted;

(b) for clause (xxxvi),the following clause shall be substituted, namely:-

“(xxxvi) “Specified premises”, for a financial year, means,-

(a) a premises from where the supplier has provided in the preceding financial year, ‘hotel accommodation’ service having the value of supply of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent; or

(b) a premises for which a registered person supplying ‘hotel accommodation’ service has filed a declaration, on or after the 1st of January and not later than 31st of March of the preceding financial year, declaring the said premises to be a specified premises; or

(c) a premises for which a person applying for registration has filed a declaration, within fifteen days of obtaining acknowledgement for the registration application, declaring the said premises to be a specified premises;”

For Official Notification Download PDF Given Below: