Tourist tax in India A complete guide

India, a diverse and culturally rich destination, attracts millions of domestic and international tourists annually. Renowned for its heritage sites, natural beauty, and spiritual experiences, it offers everything from bustling cities like Delhi and Mumbai to serene landscapes in the Himalayas and Kerala. 

Is there a tourist tax in India?

India has no unified "tourist tax," but levies GST (Goods and Services Tax) on accommodations (0-18%), TCS (Tax Collected at Source) on foreign tour packages (5-20%), and higher monument entry fees for foreigners than for Indian nationals. GST, a single nationwide tax, replaced the complex multi-tax system. For intra-state transactions, GST revenue is split 50/50 between central and state governments, balancing resource sharing for national and local development initiatives. 

For tourists

What kind of taxes do you pay as a tourist in India?

As a tourist in India, you primarily encounter the GST on accommodations and services. GST rates for hotels vary based on room tariffs:

• 0% for rooms below ₹1,000 per night
• 12% for rooms between ₹1,000 to ₹7,500 per night
• 18% for rooms above ₹7,500 per night
  

GST also applies to restaurant bills, transportation services, and other tourist-related expenses at varying rates. Some states may impose additional local taxes or fees. 

Rate of the tourist tax in India

Starting April 1, 2025, hotel accommodations in India will be taxed based on the actual room rates per night charged in the previous year. Here's a breakdown of the GST rates for different accommodation categories

Accommodation type	Room Tariff per Night	GST Rate
Budget	Below ₹1,000	0%
Mid-range	₹1,000 - ₹7,500	12%
Luxury	Above ₹7,500	18%

Always apply up-to-date rates?

Frequently asked questions from tourists

• Do I have to pay tourist tax in India?

  India does not have a specific "tourist tax." However, visitors are subject to taxes like GST on accommodations (0-18%), monument entry fees (higher for foreigners), and TCS on foreign tour packages (5-20%) *TCS- Tax Collected at Source                                                        

• How much is the tourist tax in India?

  GST rates for hotels vary based on room tariffs:
  

  • 0% (below ₹1,000/night)
  • 12% (₹1,000–7,500/night)
  • 18% (above ₹7,500/night)
    
    
• Is the tourist tax included in my booking price?

  Yes, GST and TCS are typically included in hotel bills and tour package prices. 

• Why is India charging a tourist tax?

  Tourism-related taxes help generate revenue for infrastructure maintenance, cultural preservation, and sustainable tourism practices. Differential pricing ensures accessibility for domestic tourists while maximizing revenue from international visitors.
  
  

• Are children exempt from the tourist tax in India?

  Children may receive discounted monument entry fees at select sites. However, GST and TCS apply regardless of age for accommodations and tour packages. Specific exemptions depend on service providers' policies.

For hosts

Guest registration in India

As a host in India, whether you manage a hotel, guesthouse, or homestay, you are required to collect and register guest information. This applies to both Indian and foreign nationals and helps authorities keep accurate records to ensure safety and compliance. 

How Trippz helps hosts

What information do you need to collect?

For every guest, you must record the following:

• Full name, address, and contact number
• Proof of identity (for Indian guests) or passport and visa details (for foreign guests)
• Nationality
• Purpose of stay
• Date and time of arrival
• Expected departure date
• Local address in India, if applicable

Both you and the guest must sign the registration form. For minors, a parent or guardian must sign on their behalf.

Submitting guest data

For foreign guests, you must submit a Form C to the Foreigners Regional Registration Office (FRRO) or the local police. This must be done:

• Within 24 hours of check-in
• Within 12 hours for guests from Pakistan, Bangladesh, or China

Submission can usually be done online, but in some areas, especially for homestays, it may need to be delivered in person to the local police station.

Keeping guest records

• What you need to do

  You must maintain a written guest register that contains the same details recorded during the guest registration process. This register must:

  • Be completed for every guest, whether Indian or foreign
  • Include signatures from both the guest and the host (or staff member)
  • Be stored physically on-site
  • Be kept for at least five years
  • Be available for inspection by the police or intelligence authorities

  In most cases, this written log is referred to as Form B. For foreign guests, this is in addition to the submission of Form C.

  Not keeping this register can lead to penalties.

Handling tourist tax

If you’re offering accommodation in India, chances are you’ll need to deal with GST, the country’s Goods and Services Tax. How this works depends on how you rent out your space.

• When you host directly

  If you’re managing bookings yourself, you are responsible for charging GST on top of your room rates. The applicable rate is between 0 and 18 percent, depending on the price and type of stay.

  You’ll need to:

  • File quarterly GST returns
  • Pay the collected tax within 30 days of the end of the quarter
  • For foreign transfers, note that a Tax Collected at Source (TCS) of 5 percent applies if the total exceeds ₹700,000 per year

• When you rent through a platform

  Even if you use a platform like Airbnb or Booking.com, you are still responsible for applying and reporting GST unless the platform does it for you. Check the platform’s tax handling policy and make sure your listing includes the correct tax rate. It’s your responsibility to ensure compliance, even if the booking is automated.

• GST exemptions for tourist accommodation

  • Residential use: If you rent out a home for personal residential use (not to a business), GST usually does not apply.
  • Religious accommodation: Properties owned by charitable trusts and used for public religious purposes may be exempt. This does not include higher-end rentals such as rooms over ₹1,000 per day or halls over ₹10,000 per day.
  • Educational stays: Schools and colleges are exempt when offering accommodation to students, staff, or faculty. This includes services like meals, transport, and cleaning.

  Before assuming an exemption applies, always verify with a local tax advisor, as requirements may vary by case.

• How to know if you need to register for GST

  If your total revenue from short-term rentals exceeds ₹2 million per year (or ₹1 million in some states), you are required to register for GST. Below that threshold, GST may not apply, but other obligations might still be relevant. For example, you may still need to submit Form C for foreign guests.

  When in doubt, check with a local tax advisor or use Trippz to track your obligations and stay compliant without the guesswork.

Frequently asked questions from hosts

• When do I need to charge GST to my guests?

  You need to charge GST to your guests if GST your hotel's annual turnover exceeds:

  • ₹2,000,000 (most states) 
  • ₹1,000,000 (Arunachal Pradesh, Assam, Himachal Pradesh, etc.).
    
    
• How do I register my hotel under GST?

  To register your hotel under GST:
  Visit the GST Portal: Go to gst.gov.in.
  Gather Documents:

  • PAN (Permanent Account Number): A unique identifier for income tax purposes.
  • Aadhaar (Unique Identification Authority of India): A 12-digit UID for identity and address verification.
  • Address Proof: Documents confirming your business location.
  • Fill GST REG-01 Form: This is the application form for GST registration.
  • Submit and Verify Application: Complete both Part-A and Part-B of the form, and verify using OTP or digital signature.

  • Receive GSTIN (Goods and Services Tax Identification Number): A unique 15-digit number assigned upon successful registration.
    
    

  This process ensures compliance with GST regulations and allows your hotel to operate legally under the GST framework. 

• How do I collect GST from guests?

  Scenario 1: Direct GST Collection by Hotels/Home Stays (Registered under GST)
  

  • GST Collection: Collect GST from guests directly.
  • GST Payment: File GSTR-3B quarterly and pay GST through the GST portal.

  
  

  Scenario 2: Hotels listed on Booking.com/Air BnB (Registered under GST
  

  • GST Collection: Platforms collect GST from guests on your behalf.
  • GST Payment: File GSTR-3B quarterly and pay GST through the GST portal.

  
  

  Scenario 3: Unregistered Hosts via Booking.com/Airbnb
  

  • No GST Registration: If turnover is below the threshold.
  • GST Collection: Platforms collect and remit GST directly to the government.
  • No GST Filing Required: No need to file GST returns or maintain records.
    

  
  

  Scenario 4: Unregistered Hosts Without Online Platforms

  • No GST Registration: If turnover is below the threshold.
  • GST Collection: Not recommended to collect GST without registration.

  
  **Risk: Operating without GST registration while collecting GST can lead to fines and legal issues.                                                                                                                                     

  *GSTR-3B is a monthly return that summarizes both outward and inward supplies and includes tax payments. It is due on the 20th of the next month.                                                                                                   

• How do I remit GST to the government?

  Scenario 1: Direct GST Remittance by Hotels/Home Stays
  GST Remittance: Hotels collect GST from guests and remit it to the government by filing GSTR-3B quarterly.
  
  Scenario 2: Registered Hosts via Booking.com/Airbnb
  GST Remittance: Platforms collect GST from guests, but registered hosts must file GSTR-3B quarterly and remit GST to the government.
  
  Scenario 3: Unregistered Hosts via Booking.com/Airbnb
  GST Remittance: Platforms collect and remit GST directly to the government on behalf of unregistered hosts.
  
  Scenario 4: Unregistered Hosts Without Online Platforms
  GST Remittance: Not recommended to collect GST without registration; doing so can lead to penalties and legal issues.

• Are there penalties for non-compliance to pay GST (tax) for hosts?

  Failure to comply with GST in India can lead to penalties for hosts and hotels. Late filing of returns incurs a daily fee (₹200 max ₹5,000). Not filing also has a fee (₹40/day). Interest (18% p.a.) applies to late tax payments.
  
  Specific offenses like not remitting collected tax, incorrect invoicing, or not registering when required carry penalties (10% of tax or ₹10,000 minimum, higher for fraud). General offenses have a ₹25,000 maximum penalty.

How Trippz helps hosts

Organize your administration simply

Classifying your accommodation, keeping a guest registry, collecting and remitting the correct amount of tourist tax; besides taking good care of your guests' travel, there is a lot of administrative work involved in renting out your accommodation. Work that you may not have even thought of initially when you started, and that you probably want to spend as little time on as possible. Therefore, you want to organize your administration as simply as possible.

And fortunately you can, with Trippz!

All in one overview

Trippz is here to make your life as easy as possible, while complying with all regulations. Through our (web)app you automate your guest registration, and you can even prepare your administration for the tourist tax. You don't have to worry about collecting the tourist tax either. Because we keep track of all local regulations, we know exactly what rate your guests have to pay. On arrival day, your guests will automatically receive a message from us to pay their tourist tax. At the end of their stay, the money will be automatically deposited into your account. All you have to do is periodically transfer the total amount to the municipality. Simple!

Automatically sync all Airbnb bookings

You can now synchronise all your Airbnb bookings with Trippz on your account. This means you have to do even less yourself. Ideal for hosts who rent out a lot via Airbnb. Do you rent through another platform? We expect to complete more integrations in the near future. Get in touch to find out if your platform will soon be added to Trippz.

About Trippz for hosts

Frequently asked questions about Trippz

• How does Trippz help me as a host?

  Trippz makes it easy to comply with local guest registration and tourist tax rules. Our tool automatically collects the necessary guest information and calculates the right tourist tax, based on the local regulations. You no longer have to worry about manually updating spreadsheets, logging into government portals, or missing deadlines. Trippz takes care of the compliance work in the background, so you can focus on offering a great guest experience.

• Is it difficult to start using Trippz?

  Not at all! Trippz is designed to be user-friendly. It is developed as a web application, so you do not need to download an app. You can start right away!

• What does the use of Trippz cost?

  At the moment, it is free of charge! Have a look at our page for Hosts, to see the current pricing.

• Can I use Trippz if I only rent occasionally?

  Yes, absolutely. Trippz is built to support all types of hosts, from someone who rents out their home a few weekends per year, to professional property managers. Whether you're small-scale or manage multiple listings, Trippz adjusts to your needs and helps you stay compliant with minimal effor

• Can I import all my bookings from Airbnb?

  Yes, you can! We have worked on an integration with airbnb, through which you can automatically import all your bookings. Thereby, the messages about guest registration will also be send automatically through our platform.

• Can I import all my bookings from my own booking system?

  After the integration with Airbnb, we are now working on all other sorts of integrations. Integrating your own platform is not yet available, but will be in the future!

• How does guest registration work for my guests?

  Once a booking is confirmed, Trippz sends a registration link to your guest via email or platform message. The guest fills in a simple form, and you’re notified once it’s completed. You can review the details before they are submitted to local authorities. This ensures all data is accurate, and no extra logins or uploads are needed on your side.

• Does Trippz collect the tourist tax for me?

  Yes. Trippz now collects the tourist tax directly as part of the check-in process. Once your guest has completed their registration, the correct tax amount is calculated and securely collected. You don’t need to handle any payments yourself. Periodically, you’ll receive a payout with an overview of the amounts collected and remitted, keeping everything clear and compliant.

• What if a guest doesn’t want to register digitally?

  This is an unfortunate situation, that does happen from time to time. If a guest does not want to enter digitally, you can manually enter their details into Trippz afterwards.

• What if my municipality changes the tourist tax rates?

  At Trippz, we actively follow all tax rates in areas that we cover. When a new tax rate is implemented, we will update the rates accordingly. Still missing something? Please reach out to us!

• What happens if my municipality collaborates with another one?

  No problem. As said, we actively follow all municipalities and their rules. We will automatically update this for you. If you want to be sure, you can always message us in advance, so we are even more on top of things!

• How does it work if another organization manages the tax in my municipality?

  With Trippz, you can export all the information you need. You can easily copy the needed information towards the file the tax organization requires from you.