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GST Council recommends limited input tax credit for hotels up to ₹7,500 a day, restaurants, outdoor catering and gyms; no rate cut
Our read
The credit limit is likely to be notified largely as recommended, but later than the announcement implies, and the 'same line of business' definition will be the main source of dispute.
For operators
Hotels with rooms priced up to ₹7,500 per unit per day, restaurants, outdoor caterers and gyms should map which input credits fall outside their own line of business, but hold off on repricing until the notification arrives, since the 8 October recommendation gives no effective date.
Watch
A government notification or circular fixing the effective date for the credit limit
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Which other rule changes affect Indian retailers this month?The report
The GST Council made the recommendation at its 57th meeting on October 8, covering credit in the same line of business, with the hotel limit set per unit per day. It also recommended simpler registration and faster refunds but did not cut GST rates.
- Hotel accommodation price ceiling for proposed ITC
- ₹7,500 per unit per day
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