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New Delhi: Rent paid by patients for hospital rooms will be exempted from the Goods and Services Tax (GST), the government said on Tuesday.

Issuing clarifications on levy of GST on the tariff for various accommodation services, the Central Board of Excise and Customs (CBEC) said the tax on rooms in the hotel, guest house or inns will be payable on the actual amount charged and not on declared or published tariff.

"Declared or published tariff is relevant only for the determination of the tax rate slab," the clarification issued in form of Frequently Asked Questions (FAQs) said.

No GST is applicable on room tariffs of less than Rs 1,000.

A 12 percent tax will be levied on the tariff of more than Rs 1,000 and less than Rs 2,500 while an 18 percent levy would come in for room rents of between Rs 2,500 and Rs 7,500.

A GST of 28 percent will be charged on tariff greater than Rs 7,500.

The tax will be levied on the entire amount, including charges for extra bed.

"GST rate would be determined according to the declared tariff for the room, and GST at the rate so determined will be levied on the entire amount charged from the customer," it said.

For room upgrades, the FAQs said the tax applicable on the higher category rooms will be charged on the actual tariff paid.

"If declared tariff of the accommodation provided by way of an upgrade is Rs 10,000 but amount charged is Rs 7,000, then GST would be levied at the rate of 28 percent on Rs 7,000," it said.

Tariff declared anywhere, like on websites through which business is being procured or printed on tariff card or displayed at the reception, will be the declared tariff.

"In case different tariff is declared at different places, highest of such declared tariffs shall be the declared tariff for the purpose of levy of GST," it said.

If different tariff is declared for different seasons or period of the year, the tariff declared for the seasons in which the service of accommodation is provided shall apply.

On the question of tax to be paid on rooms provided to in-patients, it said: "room rent in hospitals is exempt".

Also, any service by way of serving of food or drinks, including by a bakery would attract 5 percent GST rate under composition levy scheme.

Tax rate on services by way of admission to entertainment events or access to amusement facilities, theme parks, water parks, joy rides, go-carting, casinos, race-course, ballet and any sporting event such as IPL would be 28 percent.

Entry to casinos will attract 28 percent GST and a similar amount on the value of betting.

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