The government has clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than Rs 7500 per unit per day, will attract Goods and services tax of 18%. Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST, an official statement said on Tuesday. The clarification comes after doubts were expressed in some quarters over whether 5-star Hotels are liable to pay GST @ 28% irrespective of the declared tariff of a unit of accommodation.

Source - http://economictimes.indiatimes.com