HSN Code for Hotel Room Rent: A Quick Guide: 1 Minute to Understand Hotel Accommodation GST Codes

HSN (Harmonized System of Nomenclature) codes are an essential part of India’s GST framework, designed to classify products and services for taxation purposes. When it comes to hotel room rent, the HSN/SAC (Services Accounting Code) is used instead of a product HSN code, since renting a hotel room falls under the category of services. The relevant SAC for hotel accommodation services is 9963, “Accommodation, food and beverage services.” Under this category, hotel room rent is specifically covered. For billing, compliance, and GST returns, hotels must list SAC 996311 (Room or unit accommodation services provided by hotels, motels, etc.) on their invoices for room rent. The GST rate on hotel room rent depends on the actual amount charged per day:

1. For room tariff (per day) up to ₹1,000: GST exempt
2. ₹1,001 to ₹7,499: 12% GST
3. ₹7,500 and above: 18% GST

As a designer, careful classification and accurate invoicing are crucial not just for legal compliance but also for efficient financial planning and interior investment. It’s essential for hotels, even boutique or luxury ones, to present clean, compliant invoices—for both their guests’ records and their own budgeting. For instance, modern front desk design incorporates billing software compatible with GST SAC codes, clarifying charges and minimizing disputes. If considering a refurbishment or digital upgrade, ensuring your room planning software aligns with invoicing systems can streamline both guest experience and backend compliance.

Tips 1:

Consult with your CA or GST expert to ensure your hotel’s software and invoices are correctly updated with the latest GST codes. Regular audits help maintain compliance and save you from future hassles.

FAQ

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

A: Hotel room rent falls under SAC 996311, a subset of the broader 9963 code for accommodation services.

Q: Which GST rate applies for different hotel room tariffs?

A: GST rates depend on the daily room rent: Exempt up to ₹1,000; 12% for ₹1,001-7,499; 18% for ₹7,500 and above.

Q: Are food or other services covered under the same SAC as room rent?

A: No, food and beverage services have separate SAC codes; only the room rent itself uses 996311.

Q: Is GST applicable on hotel room rent for long stays or monthly bookings?

A: Yes, GST is still applicable and depends on the daily tariff rate, even for extended stays.

Q: Why is proper coding important for hotel invoices?

A: Using the correct SAC ensures compliance with GST law, avoids penalties, and provides clarity and transparency for guests and management.