Hotel Room Rent HSN Code Explained for Easy Compliance: Fast-Track Guide to Hotel Room Tax Codes in 1 Minute

When dealing with Goods and Services Tax (GST) in India, one of the most common questions for hotel owners and service recipients alike is: What is the correct HSN code for hotel room rent? The Harmonized System of Nomenclature (HSN) code is crucial for GST compliance, accurate invoicing, and ensuring you apply the correct tax rates. For hotel accommodations, catering services, inns, guest houses, clubs, and similar establishments providing short-term lodging, the official HSN/SAC code is 9963. This code classifies accommodation services and is used in all GST filings related to hotel room rent in India.

It's important to note that GST rates for hotel accommodations are determined not just by the HSN code but also by the value of the room rent per day. For example, as of June 2024, room rents below ₹1,000 per day have no GST, while those between ₹1,001 and ₹7,500 attract 12%, and rooms above ₹7,501 are taxed at 18%. Always consult the latest GST notifications, as rates and exemptions may change.

Correct compliance doesn’t just stop at knowing the HSN code. In the hospitality industry, how you plan and present your hotel’s offerings—down to the segmentation of rooms, amenities, and services—can have a significant impact on both guest experience and operational efficiency. As a designer, I often suggest that integrating a smart, visually compelling room planner can help hoteliers not only enhance guest satisfaction but also streamline inventory, pricing, and tax categorization, making compliance more intuitive and less error-prone.

Tips 1:

Always double-check the current GST rates for different room rent slabs and stay updated with GST Council notifications to avoid compliance hiccups. Periodic reviews of your invoicing and classification practices ensure you’re using the 9963 HSN code properly.

FAQ

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

A: The HSN/SAC code for hotel room rent is 9963, specifically used for accommodation services.

Q: Are GST rates the same for all room rents in hotels?

A: No, GST rates vary by the daily room tariff. There are different rates for rents below ₹1,000, ₹1,001–₹7,500, and above ₹7,501 per night.

Q: Do I need to mention the HSN code on every hotel invoice?

A: Yes, mentioning the HSN (9963) on invoices is required for GST compliance and helps in proper classification.

Q: Can technology help with GST compliance in the hospitality sector?

A: Yes, using digital room planners and management software can streamline invoicing and reduce errors in HSN code application.

Q: Is the HSN code for hotel room rent the same for all types of accommodations?

A: Code 9963 covers hotels, inns, guest houses, clubs, and similar accommodations that provide short-term lodging.