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Published on 8 April 2025

Rajasthan State Tax Reimbursement for Hotels and Tour Operators: Key Details

Reimbursement of State Tax for Hotels and Tour Operators

The Government of Rajasthan's Finance Department has issued an order providing for the reimbursement of State Tax for hotels and tour operators. This initiative aims to support registered establishments under the Rajasthan Goods and Services Tax Act, 2017.

1. Operative Period

This reimbursement scheme will be effective from January 1, 2022, to March 31, 2022.

2. Definitions

  • State Tax due and deposited: This refers to the amount of State Goods and Services Tax (SGST) that is paid via debit from the electronic cash ledger of the enterprise, as per sub-section (1) of section 49 of the Rajasthan Goods and Service Tax Act, 2017. This payment is made after the full utilization of available input tax credit for both State Tax (SGST) and Integrated Tax (IGST).
  • Terms used in this order will retain their meanings as defined in the Rajasthan Goods and Services Tax Act, 2017 and its rules.

3. Applicability

This order is applicable to registered taxable persons categorized as hotels, heritage hotels, resorts, and tour operators. It does not extend to stand-alone restaurants and clubs.

4. Reimbursement Eligibility

Beneficiaries may receive reimbursement of SGST as detailed in the table below for the specified period:

PeriodPercentage of Reimbursement of SGST
January 1, 2022, to March 31, 202250%

Note: Reimbursement is not available for SGST charged on rental or leasing services related to non-residential properties (SAC 997212).

5. Non-Entitlement Conditions

Any beneficiary found guilty of tax evasion in the previous financial year (2020-21) will not qualify for this reimbursement.

6. Recovery for Wrong Availment

If it is determined that a beneficiary has improperly claimed reimbursement, the amount will be recoverable as an arrear of State Tax, along with an interest rate of 18% per annum and a penalty equal to the wrongly claimed amount.

7. Interaction with Existing Benefits

Should a beneficiary receive an entitlement certificate under RIPS-2003, RIPS-2010, RIPS-2014, or RIPS-2019, the reimbursement will be adjusted accordingly, reducing the amount based on benefits already availed from these schemes.

8. Authority to Issue Guidelines

The Chief Commissioner, State Tax, is authorized to issue guidelines regarding the application process and procedures for the reimbursement.

9. Review and Modification

The State Government reserves the right to review or amend this order, either wholly or partially, on a prospective or retrospective basis.

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