NEW DELHI: Rent paid by patients for hospital rooms will be exempted from the Goods and Services Tax (GST), the Government said today.
Issuing clarifications on levy of GST on the tariff for various accommodation services, the Central Board of Excise and Customs (CBEC) said the tax on rooms in the hotel, guest house or inns will be payable on the actual amount charged and not on declared or published tariff.
“Declared or published tariff is relevant only for the determination of the tax rate slab,” the clarification issued in form of Frequently Asked Questions (FAQs) said.
No GST is applicable on room tariffs of less than Rs 1,000.
A 12 per cent tax will be levied on the tariff of more than Rs 1,000 and less than Rs 2,500 while an 18 per cent levy would come in for room rents of between Rs 2,500 and Rs 7,500.
A GST of 28 per cent will be charged on tariff greater than Rs 7,500.
The tax will be levied on the entire amount, including charges for extra bed.
“GST rate would be determined according to the declared tariff for the room, and GST at the rate so determined will be levied on the entire amount charged from the customer,” it said.
For room upgrades, the FAQs said the tax applicable on the higher category rooms will be charged on the actual tariff paid. (AGENCIES)