BTN's annual answer book for business travel managers.
India introduced a Goods and Services Tax on July 1. Air and rail
tickets are taxed at 5 percent, with business class air tickets taxed at 12 percent.
Rooms in five-star hotels are taxed at 28 percent, with other air-conditioned
hotels at 18 percent and non-air conditioned hotels 12 percent, while hotels
with tariffs below 1,000 rupees (US$15) are exempt. “Small” restaurants are
taxed at 5 percent and all others (including those in luxury hotels) at 18 percent.
Companies registered in India can offset GST against their other monthly tax
liabilities. Companies without GST registration will be unable to obtain
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