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. 

Tourist tax in India

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. 

For tourists

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

Guest Registration in Hotels

For Indian Guests, fill Guest Registration Card (GRC) with:

  • Name, address, contact number
  • ID proof (e.g., Aadhaar card number)
  • Purpose of stay
  • Arrival date and time
  • Expected departure date


For Foreign Guests, fill Guest Registration Card (GRC) with:

  • Name, nationality, passport number
  • Visa details: Number, type, validity
  • Purpose of visit
  • Duration of stay
  • Arrival date and place in India
  • Address in India (if applicable)

Submit C-Form to FRRO/LIU within 24 hours (12 hours for Pakistani, Bangladeshi, and Chinese nationals)

Guest Registration in Homestays

For Indian Guests, fill Guest Registration Form with:

  • Name, address, contact number
  • ID proof (e.g., Aadhaar card number)
  • Purpose of stay
  • Arrival and expected departure dates


For foreign Guests, fill Guest Registration Form with:

  • Name, nationality, passport number
  • Visa details: Number, type, validity
  • Purpose of visit
  • Duration of stay

Host verifies passport and visa
Submit C-Form to local police station or FRRO within 24 hours (12 hours for Pakistani, Bangladeshi, and Chinese nationals)
Note: Some states may have additional requirements for homestays.

*FRRO: Foreigners Regional Registration Office
*LIU: Local Intelligence Unit
*Form C: A mandatory form for registering foreign guests, containing details such as passport number, visa information, purpose of visit, and duration of stay. It must be submitted to the FRRO or local police station within the specified timeframe.

How Trippz can help you

Guest Record Maintenance

Hotels:

  • Mandatory handwritten register for all guests (Indian and foreign)
  • Contains guest name, nationality, passport/ID number, arrival/departure dates, room number, purpose of visit, and local address in India
  • Must be preserved for 5 years and shown to authorities on demand
  • Both guest and hotel staff must sign (parents sign for minors)

Homestays:

  • Similar to hotels, maintain a handwritten Form B register
  • Include guest details as mentioned above
  • Keep for 5 years and make available for inspection by authorities
  • Host and guest signatures required

Non-compliance with Form B maintenance can result in fines or legal action.

*FRRO: Foreigners Regional Registration Office

*LIU: Local Intelligence Unit



Handling of tourist tax

  • Remittance of GST(tax) by the hosts

    Hotels in India collect taxes from tourists as part of their charges and remit them to the government. This includes GST (0-18% based on room tariff). Hotels must file quarterly returns and pay collected taxes within 30 days of the quarter's end. For foreign remittances, a TCS of 5% applies on amounts exceeding ₹700,000 annually.

  • GST(tax) when renting through an online booking platform

    If you’re renting your property through platforms like Airbnb or Booking.com, you are still responsible for collecting and remitting GST. While the platform might handle the booking, it’s your responsibility to ensure the correct tax is applied and reported. Make sure to include GST details in your listing details, and double-check the platform’s policy on tax collection. 

Don’t want to worry about remitting the correct amount of tourist tax? That’s possible, with the use of Trippz!

Make your life easy

Are there exceptions to GST(tax) rules on tourist accommodation in India?

  • Important GST Exemptions for Hosts in India 

    • For Renting Residential Dwellings: Renting homes for personal use is generally exempt from GST, except when rented to a registered business.
    • For Religious Premises: Renting spaces for public religious use is exempt if owned by a charitable trust, but not for high-end rentals (e.g., rooms over ₹1,000/day or halls over ₹10,000/day).
    • For Educational Services: Services provided by schools and colleges to students, staff, and faculty are exempt from GST. This includes transportation, meals, security, and cleaning services.
Are there exceptions to GST(tax) rules on tourist accommodation in India?

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!

How Trippz helps hosts

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

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About Trippz for hosts

Frequently asked questions about Trippz

  • 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!

  • 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!

  • 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.

Tourist Tax Made Easy