GST Specified Premises Opt-In Declaration | LegalOnlineHub

GST Specified Premises Opt-In Declaration – Complete Legal Advisory

A detailed compliance guide for Hotels, Lodges, Guest Houses and Accommodation Service Providers

Under the Goods and Services Tax (GST) regime, accommodation service providers such as hotels, lodges and guest houses are governed by specific compliance requirements. Through Notification No. 05/2025 – Central Tax (Rate), the Government has introduced a clear framework for identifying “Specified Premises” and filing an Opt-In Declaration. This advisory explains the concept, procedure and legal implications in a simplified manner.

What are “Specified Premises” under GST?

As per GST provisions, any hotel or accommodation unit having a declared tariff exceeding ₹7,500 per day per unit qualifies as a Specified Premises. Such premises are subject to a different tax treatment, including higher GST rates and specific input tax credit (ITC) rules.

Purpose of Opt-In Declaration

The Opt-In Declaration allows a taxpayer to voluntarily declare that their premises fall under the category of Specified Premises. This mechanism ensures transparency, proper classification and correct application of GST rates by the tax authorities.

Who can file an Opt-In Declaration?

GST registered hotel, lodge or guest house operators
Taxpayers having Active or Suspended GST registration
Applicants seeking new GST registration

Understanding Annexure VII, VIII and IX

Annexure VII – For Existing Registered Taxpayers

Annexure VII is applicable to taxpayers who are already registered under GST and intend to opt-in as Specified Premises for the upcoming financial year.

Annexure VIII – For New GST Applicants

Annexure VIII is required to be filed at the time of new GST registration if the applicant wishes to declare the premises as Specified Premises from the beginning.

Annexure IX – Opt-Out Declaration

If a taxpayer no longer wishes to be classified as Specified Premises, they may file an Opt-Out Declaration using Annexure IX, subject to prescribed conditions.

Important Compliance Timeline

For the Financial Year 2026-27, Annexure VII can be filed online between 01 January 2026 and 31 March 2026. Filing within the prescribed period is mandatory to ensure uninterrupted compliance.

            Important Note:

            Taxpayers who submitted a manual declaration during FY 2025-26
            must compulsorily re-file the Opt-In Declaration online
            for FY 2026-27 through Annexure VII.
        

Legal and Practical Considerations

Declared tariff structure should be reviewed carefully before opting in
Incorrect declaration may attract GST demand, interest and penalty
Impact on GST rate and ITC eligibility must be evaluated in advance