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Before leaving on a trip, you can either book your hotel in advance or book it once you arrive at your destination. During this process, hotel prices may vary depending on factors such as season, location, or star rating. However, when it comes time to check out, many people do not pay attention to the bill or service charge. But do you know that GST is applied differently depending on your hotel room rate?

GST Rates: 12% and 18%

According to the GST Council, hotels charge 12% GST on rooms costing ₹1,000 or less per day. If your hotel room costs more than ₹1,000 per day, you will be charged 18% GST. It is important to be aware of these rates, especially if you think you have been charged incorrectly. If you have been overcharged, you can bring it to the attention of the hotel owner, or if necessary, file a complaint with the Consumer Commission.

Understanding Service Charges

Restaurants and hotels often add service charges to customer bills as a gratuity for their employees. Although there is no legal order for this, the government has not banned it either. Service charges contribute to the taxes paid by restaurants and hotels. The percentage of service charges varies and is usually around 5% to 10%. However, not all establishments clearly mention this fee on their menus.

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Where to file USA complaints

Be it a hotel or a restaurant, service charges are entirely at the discretion of the customer. If you want to waive the service charge, and the hotel owner insists on it, you can file a complaint with the Consumer Commission or call the helpline number 1915 for assistance. This way, you can initiate action against the hotel's practices.

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Tips to Reduce Your Hotel Bill

If you want to lower your hotel bill, consider these tips:

Pay attention to room rates before booking. If you have doubts, call to inquire about prices.

Look for credit card offers that provide discounts or savings on room rates.

Pay only for the items you use. Check your bill for any unexpected charges, such as for bottled water.

Consider traveling during the off-season when prices are lower.