Hotel Subsidy Solutions18 June 20256 min
Every RTUP-registered hotel must elect RIPS Option I (75% net SGST reimbursement for up to 10 years) OR Option II (10–20% capital subsidy disbursed over 10 years). You cannot switch after registration.
When SGST wins
- High room ADR and strong F&B revenue
- Large room inventory with steady GST liability
- Palace and heritage hotels with premium pricing
- Category 1 urban markets like Jaipur and Udaipur
When capital subsidy wins
- Heavy upfront capex on greenfield builds
- Smaller room count with lower GST turnover
- Desert camps and seasonal properties
- Projects where lender covenants favour upfront grant streams
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