Hotel Room Rent HSN Code Simplified: What Every Traveler & Owner Should Know: 1 Minute to Decode HSN Rules & Tax Rates for Hotel Room Rent

Travelling for business or leisure and stumbling over hotel billing terms? You might have noticed “HSN code” listed on your hotel invoice. HSN, short for Harmonized System of Nomenclature, is a universal coding system used for classifying goods and services for taxation and record-keeping. For hotels and travelers alike, understanding the Hotel Room Rent HSN Code simplifies GST compliance and ensures transparent billing.

HSN Code for Hotel Room Rent

Under the Indian GST regime, services—including accommodation—get classified with HSN codes (technically, SAC codes for services). Hotel room rent is allocated SAC Code 996311, covering accommodation in hotels, inns, guest houses, and similar establishments. This code influences the GST rate applied to your stay, which varies by tariff bands:

1. Tariff below ₹1000/night: GST exempt
2. ₹1001–₹7500/night: 12% GST
3. Above ₹7500/night: 18% GST

Why HSN Code Matters for Travelers and Owners

For travelers, knowing the HSN code streamlines expense claim submissions and clarifies GST paid, especially when booking for work travel. For hotel owners, accurate HSN coding ensures correct tax payments, seamless audits, and builds customer trust with transparent invoices.

As a designer myself, I see tax codes like hotel HSN codes similar to setting up the perfect spatial layout—each element, if categorized precisely, avoids confusion and enhances the guest experience. When the service structure is clear and organized, both owner and guest enjoy a smoother, more enjoyable “stay”—whether in tax compliance or design.

Tips 1:

Always review your hotel bill for the correct SAC or HSN code (996311 for room rent). If you notice discrepancies, clarify with the front office for accurate invoicing. This is especially crucial if you need to claim GST input credits or official travel reimbursements.

FAQ

Q: What is the HSN/SAC code for hotel room rent?

A: The SAC (Service Accounting Code) is 996311 for hotel or accommodation services under GST.

Q: Do all hotel stays incur GST?

A: No. Rooms with a tariff below ₹1000/night are exempt, while GST rates (12% or 18%) apply above this threshold based on tariff bands.

Q: Why is the HSN/SAC code important for travelers?

A: It helps streamline expense reimbursement and GST claims, and ensures your bills are compliant for official record-keeping.

Q: Can hotels use the wrong HSN/SAC code?

A: It’s rare, but mistakes can happen. Double-check for code 996311 on your invoices to ensure accurate taxation.

Q: Where can hotel owners find more about classifying services for GST?

A: The official GST portal and hospitality industry bodies regularly publish updates on GST and relevant SAC/HSN codes.