GST Council allows high-end hotels to chose between two indirect tax rates for restaurant services on premises

In a significant change for the hospitality sector, the GST Council has decided to allow high-end hotels to choose between two indirect tax rates for restaurant services provided on their premises. Starting from 1 April 2025, such hotels will have the option to choose between two GST rates: 5% without Input Tax Credit (ITC) or 18% with ITC.