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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteIn India, a hotel wedding bill can contain several GST treatments rather than one package-wide rate. Room accommodation is in the 12% tier when the value of the accommodation unit is up to ₹7,500 per unit per day, and in the 18% residual tier above that amount. Wedding catering or catering combined with function-premises rental can qualify for 5% GST without input tax credit only when the rate entry’s supplier, venue and non-specified-premises conditions are satisfied. A venue’s star rating is not the current test.
India is the assumed jurisdiction
This guide assumes the hotel or resort is in India and applies the current Central Board of Indirect Taxes and Customs (CBIC) service-rate schedule accessed in 2026. GST rules differ in other countries. The applicable split between CGST plus SGST/UTGST and IGST also depends on the place-of-supply rules and the recipient’s registration status.
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The primary rate table is CBIC’s GST Goods and Services Rates, services under Heading 9963. For a specific contract, the wording of the quotation, agreement, invoice and the legal entity making each supply matters as much as the advertised package name.
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The rate map for a typical hotel wedding
| Service on the bill | Rate indicated by the current schedule | Conditions or checks |
|---|---|---|
| Room accommodation valued at up to ₹7,500 per unit per day | 12% (6% CGST + 6% SGST/UTGST) | Confirm that the amount is the value of supply for the accommodation unit and identify any separately supplied items. |
| Room accommodation valued above ₹7,500 per unit per day | 18% (9% CGST + 9% SGST/UTGST) | The threshold is based on value of supply, not the hotel’s star classification. |
| Qualified outdoor catering at non-specified premises | 5% (2.5% CGST + 2.5% SGST/UTGST), without input tax credit | Supplier, location and every condition in the relevant rate entry must be met. |
| Qualified composite outdoor catering plus renting of function premises | 5% without input tax credit | The supply must fit the entry’s description and non-specified-premises conditions. |
| Catering supplied at or from specified premises, including the residual category described in the schedule | 18% | Check specified-premises status for the relevant financial year and the supplying entity. |
| Venue rental with no catering | Not established by the cited material as a universal rate | Ask the supplier to state the precise classification and rate basis; obtain professional advice if material. |
| Rooms sold with a full wedding package | No universal package rate | Review each line, the contractual bundle, supplier registrations and venue status. |
The CBIC entry describes the accommodation threshold as “having value of supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent.”
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How GST is determined for hotel rooms
Use the value-of-supply threshold
For accommodation, compare the value of the room supply for one unit and one day with ₹7,500. A unit at or below the threshold falls in the 12% tier; a unit above it falls in the 18% tier. Apply the test to the amount that is actually the accommodation supply under the quote and contract. If breakfast, transfers, décor or other services are separately supplied, do not silently fold them into the room figure.
Do not substitute star rating
Star category is not the current rate test. A five-star label does not automatically determine the accommodation percentage, and an independently rated property is not automatically entitled to the lower tier. An older 2017 government clarification discussed star-rating irrelevance for the then-current threshold; it does not replace the present CBIC schedule. The current schedule should control the invoice.
Calculate the tax on the correct base
For an intra-State supply, a 12% charge ordinarily appears as 6% CGST plus 6% SGST (or UTGST), while an 18% charge ordinarily appears as 9% plus 9%. Confirm whether the displayed room amount is tax-inclusive. A quote saying “₹7,500 including GST” is not the same tax base as one saying “₹7,500 plus GST.” Ask for the taxable value and tax amount separately.
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Wedding catering and function-space rental
When the 5% entry can apply
The reduced entry covers qualified outdoor catering and a composite supply of outdoor catering together with renting premises arranged for a function, such as a hotel, convention centre, club, pandal or shamiana. It carries 5% GST without input tax credit only when the entry’s detailed conditions are met. The relevant official wording is: “Composite supply of ‘outdoor catering’ together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function)” subject to the specified-premises and supplier conditions.
Specified premises can move the supply to 18%
The schedule places corresponding catering supplies provided by suppliers at or from specified premises in the residual 18% category. “Specified premises” is therefore a factual status to verify, not a synonym for “hotel” or “banquet hall.” The supplier’s legal entity and the premises from which the service is provided both matter.
The 2025 definition change
CBIC Notification No. 05/2025-Central Tax (Rate), dated 16 January 2025, amended the specified-premises definition with effect from 1 April 2025. For a financial year, the amended framework includes premises where, in the preceding financial year, the supplier provided hotel accommodation whose value of supply exceeded ₹7,500 per unit per day, along with premises covered by the prescribed declaration mechanism. Check the venue’s status for the financial year in which the event occurs; an old blog post or a previous year’s bill may not be reliable. The notification contains timing and filing details that should be checked directly or reviewed with a tax professional.
Does the room tariff affect GST on food?
Not as a blanket rule. The room threshold determines the accommodation entry. Food and wedding catering are tested under their own catering entries, including the conditions for outdoor catering, composite catering-plus-rental, specified premises and the no-input-tax-credit requirement. A room booking at the lower accommodation tier does not automatically make food 5%, and an expensive room does not by itself prove that every food line is 18%.
Ask what was actually supplied. A hotel may issue separate room, restaurant, banquet, décor and equipment lines, or several registrations may contract with the customer. Where catering and a function-space rental are supplied together, the contract may fit the composite entry, but the rate schedule alone cannot classify every package. A supplier should identify the legal basis for the percentage shown on its quote.
What if the banquet booking includes food but no hall-rent line?
The absence of a separately displayed hall-rent charge does not by itself establish the GST rate. The contract may describe a bundled catering-and-premises service, or it may describe catering alone with the venue made available as part of that supply. Conversely, a venue-only service should not be assigned the 5% composite catering rate when catering is absent. Request the signed terms, the taxable value for each supply and the classification used on the tax invoice.
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If the hotel advertises a single “wedding package,” determine whether one legal entity supplies everything, whether another caterer is engaged, and whether room nights are included in the same consideration. These facts can change the classification analysis.
A practical review procedure for any hotel quote
- Separate the deliverables. List rooms, meals or outdoor catering, banquet or lawn access, décor, sound and lighting, equipment, service charges, transport and taxes.
- Record the room metric. Note the value of each accommodation unit per day, the number of units and nights, and whether the amount is before or after GST.
- Identify every supplier. Record the legal name and GSTIN on the quotation or invoice. A resort brand and a catering company may be different taxable persons.
- Describe the event service. Ask whether the supplier is treating it as outdoor catering, catering plus premises rental, restaurant service, venue rental or another category.
- Check premises status. Ask whether the location is a specified premises for the relevant financial year and what evidence supports that answer.
- Check the input-tax-credit statement. A 5% catering treatment under the qualified entry is without ITC. Do not compare percentages without considering that restriction.
- Match the invoice. Ensure the final tax invoice shows taxable values, rates, CGST/SGST or IGST, supplier GSTIN and the description promised in the contract.
- Escalate uncertainty. If the tax difference is significant or the supplier’s explanation changes between quote and invoice, obtain advice from a qualified GST professional before paying or claiming credit.
Worked illustrations
Room below the threshold
Suppose the taxable value of one room unit is ₹6,000 for one day and the supply qualifies for the lower accommodation tier. GST at 12% is ₹720, shown as ₹360 CGST and ₹360 SGST/UTGST for an intra-State invoice. The calculation changes if the ₹6,000 is tax-inclusive or if additional items are part of the same taxable supply.
Room above the threshold
If the accommodation value is ₹9,000 per unit per day, the residual accommodation tier applies. At 18%, the tax is ₹1,620, ordinarily split into ₹810 CGST and ₹810 SGST/UTGST for an intra-State supply.
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Catering and premises supplied together
A quote that combines outdoor catering and function-premises rental can use the 5% treatment only after the supplier confirms that all entry conditions, including the non-specified-premises requirement and no-ITC condition, are satisfied. If the supplier or premises falls within the specified-premises category, the schedule places the corresponding supply in the residual 18% category. These percentages are not a recommendation; they are a classification consequence that must be supported by the facts.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Place of supply and whether the invoice shows CGST/SGST or IGST
The IGST Act contains specific rules for accommodation in immovable property used for organising a marriage or reception and for event-related services. In general, property-related accommodation is connected to the property’s location, while event services supplied to a registered recipient are generally connected to where the event is actually held, subject to statutory exceptions. Review the CBIC IGST Act, 2017 place-of-supply provisions and the CBIC GST Rules.
Because the result depends on the customer’s registration status, the event location and the precise service, do not assume that every destination wedding invoice must show IGST or that every local booking must show CGST plus SGST. Have the supplier confirm the place-of-supply basis on the invoice.
Input tax credit: the trade-off behind 5%
The qualified 5% catering entry is expressly without input tax credit. A lower percentage may therefore produce a different total economics for a business customer than an 18% charge that permits credit where the law otherwise allows it. Private wedding customers generally cannot claim business input credit merely because GST is shown. Business recipients should have their tax adviser review eligibility, blocked-credit rules and the nature of the expenditure rather than choosing a rate solely because it is lower.
Common errors and how to correct them
- Using star rating as the threshold: replace it with the value-of-supply test for the accommodation unit.
- Applying 5% to every banquet: verify outdoor-catering, composite-supply, supplier and specified-premises conditions.
- Treating a package name as a legal classification: inspect the contract, line items and GST registrations.
- Assuming room GST controls food GST: analyze accommodation and catering entries separately.
- Ignoring the 1 April 2025 change: verify specified-premises status for the event’s financial year.
- Comparing percentages without checking ITC: record whether the quoted treatment prohibits input credit.
- Accepting an unexplained venue-only rate: request the exact classification and written basis, then seek professional advice if needed.
- Overlooking tax-inclusive wording: ask whether quoted prices are before GST or include it.
Documents to request before paying a deposit
- An itemised quotation showing taxable value and GST for rooms, food, premises and extras.
- The supplier’s legal name, GSTIN and the entity responsible for each service.
- Written confirmation of whether the booking is treated as outdoor catering, a composite catering-plus-rental supply or another category.
- The venue’s specified-premises status for the relevant financial year, where it affects the rate.
- Terms stating whether the displayed prices include GST and whether the catering rate is without ITC.
- A sample or draft tax invoice showing the proposed CGST/SGST or IGST treatment.
Authoritative references
Use the current CBIC service-rate schedule for the rate entries. The specified-premises amendment is in Notification No. 05/2025-Central Tax (Rate). Place-of-supply provisions are available through the CBIC IGST Act portal and GST Rules portal. A historical government explanation of service rates appears in the 2018 Press Information Bureau release; the older 2017 hotel-rating clarification is context only and should not override the current schedule.
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