Hotel Room Rent HSN Code: Essential Guide for Hoteliers: Fast-Track Guide to Understanding Hotel Room Rent HSN Code

The Hotel Room Rent HSN Code is a critical element for hoteliers and businesses in the hospitality industry, especially in the context of GST compliance in India. HSN stands for "Harmonized System of Nomenclature", which classifies goods and services for taxation purposes worldwide. For hotel accommodation services, understanding the relevant HSN code helps ensure correct GST application, smoother audits, and seamless billing processes. In India, hotel room accommodation falls under the SAC code, a variant of HSN used for services—specifically, “9963: Accommodation, food and beverage services,” with hotel room rent classified under “996311”. The applicable GST rates depend on the daily room tariff, with diverse slabs and implications for input tax credits. Correct classification not only avoids legal complications but also assists hoteliers in presenting clear invoices to guests and authorities.

As a designer, attention to compliant documentation doesn’t just ensure seamless operations; it directly impacts how hotel interiors are experienced. For instance, clear billing, enabled by proper HSN/SAC code usage, reassures guests and helps position a hotel as trustworthy and professional, allowing designers and managers to focus on creating unique, welcoming environments. Interested in streamlining your workflow further? Leveraging digital tools like a room planner can optimize both space design and operational efficiency, enhancing the guest experience from check-in to check-out.

Tips 1:

Always verify the latest government notifications, as HSN/SAC codes and GST rates may be revised periodically. Staying current prevents compliance errors and surprise penalties.

FAQ

Q: What is the HSN code for hotel room rent under GST?

A: The hotel room rent is classified under SAC 996311, which falls within the broader HSN/SAC 9963 for accommodation, food, and beverage services.

Q: What GST rate applies to hotel room rent?

A: GST rates vary by tariff: typically 12%, 18%, or 28%, depending on the declared room rate. Always check the latest GST slabs for accuracy.

Q: Is GST mandatory on all hotel rooms?

A: GST is mandatory if the hotel’s aggregate turnover exceeds the threshold limit prescribed by law, and rates differ based on room rent.

Q: Can hotels claim input tax credit on GST paid?

A: Yes, hotels registered under GST can claim input tax credit on goods and services used in the provision of accommodation, subject to compliance with GST rules.

Q: Do all accommodation services carry the same HSN code?

A: Accommodation services such as hotels, guesthouses, and inns generally fall under the same SAC (996311), but always verify for special cases or bundled offerings.