"GST-ready" gets used loosely in hotel software marketing, including our own. Here's what it actually means in practice, and what to expect from software that genuinely handles it.
CGST, SGST and IGST — A Quick Refresher
India's GST is a dual structure: when a guest and the property are in the same state, tax is split between CGST (central) and SGST (state). When they're in different states, IGST (integrated) applies instead. For a hotel or guesthouse, this means the correct tax split depends on where your property is registered — not just what you're charging. Rates themselves vary by category and are updated by the government from time to time, so always confirm current applicable rates with your accountant rather than relying on any single source, including this one.
Why Manual GST Calculation Is Risky
When GST is calculated by hand — even in a spreadsheet — a few things tend to go wrong over time:
- Different staff apply the split differently, especially under pressure at checkout.
- Rate changes don't get applied consistently across every category or every branch.
- Invoices for rooms, halls, food and laundry get calculated separately and don't reconcile cleanly when combined.
- At filing time, your accountant has to reconstruct the breakdown from raw transaction data instead of pulling it from a report.
What GST-Ready Software Should Handle Automatically
At minimum, look for:
- Automatic CGST/SGST/IGST calculation per room category, hall amenity, food item and laundry service — not just on rooms.
- Rate snapshotting, so a GST or price change today doesn't alter an invoice generated last month.
- One consolidated invoice if a guest uses more than one service — a room and a hall booking, for example — rather than separate GST calculations that need to be manually combined.
- A dedicated GST report that gives your accountant a ready breakdown for filing, instead of raw transaction exports.
How RBS Handles This
RBS calculates CGST/SGST/IGST automatically across every module — rooms, halls, food and laundry — with rates configurable per category and per item. Because rates are snapshotted at the time of booking or order, a later rate change never affects an invoice that's already been generated. Our GST Billing page covers the specifics, including how the GST report is structured for filing.