Before you embark on a trip, you either book a hotel in advance or make the booking once you reach your destination.
During this process, hotel prices are determined based on factors like the season, location, or star ratings.
Understanding GST on Hotel Bills
When it’s time to check out of your hotel room, some of you may pay the bill without examining it closely.
But do you know how much GST (Goods and Services Tax) is applied to a hotel room costing less than 1000 rupees? It might be more than you think. Let’s delve into the details.
12% GST for Rooms Below 1000 Rupees:
According to the GST Council, hotels with a daily room rate below 1000 rupees incur a 12% GST charge.
So, if your hotel room costs 7500 rupees or less, you will be charged 12% GST.
On the other hand, if your room rate exceeds 7500 rupees per day, you’ll face an 18% GST charge. If you are charged more than this, you can provide this information to the hotel owner.
Understanding Service Charges
Restaurants and hotels often add a service charge to the bill, which is a gratuity for their employees.
While there’s no legal obligation to pay this charge, the government has not prohibited it. The service charge is meant to cover taxes paid by restaurants and hotels.
The exact percentage of this charge varies but is generally between 5% to 10% of the bill.
Where to File Complaints
If you wish to challenge the imposition of a service charge, you can file a complaint with the Consumer Forum or Consumer Helpline at 1915. Initiating a complaint process will hold the hotel accountable for their actions.
Tips to Reduce Your Hotel Bill
If you’re looking to reduce your hotel bill, here are some tips to keep in mind:
Check Room Rates Before Booking
Before booking a hotel, carefully examine the room rates. If you have any doubts, you can call and inquire about the prices over the phone, especially if you’re unsure about the rates or additional charges.
Look Out for Discounts
Many hotels offer discounts on room rates, and some credit cards provide additional benefits. Keep an eye out for these discounts and promotions.
Pay Only for What You Use
When paying your hotel bill, scrutinize it to ensure you’re only paying for services you’ve used.
For example, double-check that you’re not being charged for bottled water if you brought your own. Verify any additional services before accepting them.
Off-Season Travel
Consider traveling during the off-season when prices are generally lower. This can significantly reduce your hotel expenses.
By following these tips and understanding the various charges on your hotel bill, you can make more informed choices and potentially save money on your hotel stay.