Hotel Accommodation Above ₹7,500 Classified as “Specified Premises”: CBIC Implements GST Council Recommendations [Read Order]

The Ministry of Finance has issued Notification No. 05/2025-Central Tax (Rate), dated January 16, 2025, announcing significant changes in the Goods and Services Tax ( GST ) compliance framework, specifically targeting high-value accommodations in the hospitality sector. These updates, effective from April 1, 2025, implement the recommendations of the 55th GST Council Meeting to streamline processes and enhance transparency.

Redefining “Specified Premises”:

• Premises offering hotel accommodation services exceeding Rs. 7,500 per unit per day are now classified as “specified premises.”
• Businesses can voluntarily declare their premises as “specified” through a newly introduced declaration system.

Mandatory Declarations:

• Registered taxpayers must file a declaration between January 1 and March 31 of the preceding financial year to classify their premises as “specified.”
• New GST registrants must file the declaration within 15 days of receiving acknowledgment of their registration.

Introduction of New Annexures:

To facilitate compliance, the government introduced three forms:

• Annexure VII: For registered taxpayers opting to classify premises as “specified.”
• Annexure VIII: For new GST applicants declaring specified premises.
• Annexure IX: For opting out of the “specified premises” status.

Compliance Timeline:

The new rules apply from April 1, 2025, giving businesses enough time to adapt. To ensure compliance, all financial year declarations must adhere to the respective deadlines.

Annexure VII

OPT-IN DECLARATION FOR REGISTERED PERSON
(See para 4(xxxvi))

Declaration by a registered person supplying hotel accommodation service before the jurisdictional GST authority declaring the premises to be a ‘specified premises’.

Reference No.:
Date:

1. I/We ……………………. (name of Person) do hereby declare that the premises at ……(address)…… shall be a ‘specified premises’ for the Financial Year ………(yyyy-yy)……….
2. Further, I/We understand the said declaration will apply to the entire Financial Year specified in (1) above and will continue to apply to subsequent Financial Years also, unless I/We declare the premises as not a ‘specified premises’ by filing a declaration in the format specified at Annexure IX.

Legal Name:
GSTIN:
PAN No.:
Name of Authorized Signatory:
Signature of Authorized Signatory:
(Dated acknowledgment)

Note:

1. The above declaration, declaring the premises as a ‘specified premises’ for a Financial Year, shall be filed by a registered person on or after 1st of January of the preceding Financial Year but not later than 31st of March of the preceding Financial Year.
2. The above declaration shall have to be filed separately for each premises.

Annexure VIII

OPT-IN DECLARATION FOR PERSON APPLYING FOR REGISTRATION
(See para 4(xxxvi))

Declaration by a person applying for registration before the jurisdictional GST authority declaring the premises to be a ‘specified premises’.

Reference No.:
Date:

1. I/We ……………………. (name of Person) have applied for registration vide ARN No. ………………………. and do hereby declare that the premises at ……(address)…… shall be a ‘specified premises’ from the effective date of registration till the end of the Financial Year.
2. Further, I/We understand the said declaration will apply to the subsequent Financial Years also, unless I/We declare the premises as not a ‘specified premises’ by filing a declaration in the format specified at Annexure IX.

Legal Name:
ARN:
PAN No.:
Name of Authorized Signatory:
Signature of Authorized Signatory:
(Dated acknowledgment)

Note:
The above declaration shall have to be filed separately for each premises.

Annexure IX

OPT-OUT DECLARATION
(See para 4(xxxvi))

Declaration by a registered supplier of hotel accommodation service before the jurisdictional GST authority declaring the premises as not a ‘specified premises’.

Reference No.:
Date:

1. I/We ……………………. (name of Person) do hereby declare that the premises at ……(address)…… shall not be a ‘specified premises’ for the Financial Year ………(yyyy-yy)………
2. Further, I/We understand the said declaration will apply to the entire Financial Year specified in (1) above and will continue to apply to subsequent Financial Years also, unless I/We declare the premises to be a ‘specified premises’ by filing a declaration in the format specified at Annexure VII.

Legal Name:
GSTIN/ARN:
PAN No.:
Name of Authorized Signatory:
Signature of Authorized Signatory:
(Dated acknowledgment)

Note:

1. The above declaration, declaring the premises as not a ‘specified premises’, for a Financial Year, shall be filed on or after 1st of January of the preceding Financial Year but not later than 31st of March of the preceding Financial Year.
2. The above declaration shall have to be filed separately for each premises.

[F. No. 190354/2/2025-TO (TRU-II)]
MD. ADIL ASHRAF, Under Secy.

Note: The principal notification number 11/2017 -Central Tax (Rate) was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and last amended vide notification number 07/2024-Central Tax (Rate), published in the Gazette of India vide number G.S.R. 617(E), dated the 8th October, 2024.

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