Understanding HSN Code for Hotel Room Rent: 1 Minute to Learn the HSN Code for Your Hotel Business

The HSN code, or Harmonized System of Nomenclature, is an internationally standardized system of names and numbers for classifying traded products, developed by the World Customs Organization. In India, the HSN code is widely implemented for Goods and Services Tax (GST) compliance, ensuring a uniform classification of goods and services across sectors. When it comes to the hospitality industry, particularly for hotel room rent, using the correct HSN code is crucial for proper invoicing, tax calculation, and filings.

The HSN code for hotel accommodation services such as hotel room rent generally falls under the code 9963, which is categorized as "Accommodation, food and beverage services." For hotel & lodging services, the further breakdown is:

1. 996311 – Room or unit accommodation services provided by hotels, inns, guest houses, clubs, campsites, and other similar establishments for a temporary stay

This code covers charges for lodging, holiday homes, and similar agencies. It's important for hoteliers to mention the correct HSN code on all invoices or bills issued to guests, not only to comply with GST regulations but also to ensure a seamless experience if there are audits or inspections by tax authorities. The rental rates also influence GST rates: rents below a certain threshold may be exempt or taxed at a lower percentage, while luxury accommodation has higher rates.

As a designer, I understand how vital operational compliance like this is for running a hotel business smoothly—just as the right floor plan streamlines guest experience and workflow. For hoteliers aiming to optimize guest experience and back-end operations, using professional room planner tools can be as transformative as having the right HSN code on your invoices. Both are foundational for a seamless, well-managed hospitality environment.

Tips 1:

Stay updated with the latest GST notifications and rate changes concerning hotel room rentals, as these can affect which HSN code or GST rate you should apply. Working closely with your accounts team or a tax consultant ensures consistent compliance.

FAQ

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

A: The primary HSN code for hotel room rent is 996311, which covers accommodation services provided by hotels, guest houses, and similar establishments.

Q: Is it mandatory to mention the HSN code on hotel room invoices?

A: Yes, mentioning the correct HSN code is essential for GST compliance on all hotel invoices.

Q: Does the GST rate for hotel rooms depend on the HSN code?

A: The HSN code identifies the service, but GST rates can vary according to the room rent amount and government rules, not just the HSN code itself.

Q: Does the HSN code change for different hotel services such as restaurants or conference halls?

A: Yes. Different services use different HSN codes. For example, restaurant services use a different HSN code than accommodation services.

Q: Where can hoteliers verify the latest HSN codes and applicable GST rates?

A: Hoteliers should check official GST portals or consult their tax advisor for the most current HSN codes and GST rate notifications.