ITC option eliminated; 5% GST will be applied to low-cost hotel stays starting on September 22.

If a hotel accommodation service provider's unit price is less than or equal to ₹7,500 per unit per day, they must charge 5% GST without ITC on those units. For these services, an obligatory rate is specified. It is not possible to pay GST at 18% with ITC. In addition to having to charge visitors the discounted 5% rate, hotels will no longer be able to claim the Input Tax Credit (ITC) for the products and services that are utilized to provide these lodging services.