Tax based on Tarrif and not rating on Hotels

New Delhi July 19: A clarification was issued yesterday. The government yesterday has said that goods and services tax (GST) rate on hotel accommodation will not depend on the star-rating of the hotel and Tax will be charged based on the tariff. The GST rates would be applicable as follows

* Hotel Room tariff up to RS 1000 -0 % GST (tax exempt)
* Hotel room tariff between RS 1000-2500 -12 % GST
* Hotel room tariff between RS 2500-7500 -18 % GST
* Hotel room tariff between above RS 7500 -28 % GST

The above tariffs are per day. the clarification comes in wake of some the doubts expressed by hotels that all 5-star hotels must pay 28 % tax.
Finally, the hotel industry has relaxed with the clarification.