If you run hotel, guesthouse, lodge, inn or any kind of short-term accommodation business in India, you have probably come across HSN code 996311. This is service code used under GST (Goods and Services Tax) for room rental and accommodation services provided to guests on short term basis.
In India’s GST system, services are identified using SAC codes (Service Accounting Codes) which are part of broader HSN (Harmonized System of Nomenclature) framework. HSN code 996311 falls under this category and is specifically used when business charges guests for staying in rooms for night, week or short period.
What Does HSN/SAC Code 996311 Cover?
SAC code 996311 covers room accommodation services provided by hotels, inns, guesthouses, clubs and similar. This includes:
- Hotel rooms: standard rooms, suites, deluxe rooms booked by guests
- Guesthouse accommodations: rooms in government or private guesthouses
- Inn and lodge stays: budget or mid-range stays for travelers
- Serviced apartments: short-term furnished apartment rentals
- Bed and breakfast (B&B) services: where room and breakfast are offered together
- Dharmashalas and similar establishments: religious or community-run stay facilities
- Clubs with room facilities: where members or guests stay overnight
To use this code accommodation must be short-term or temporary in nature. Long-term residential rentals are treated differently under GST.
GST rate applicable on HSN code 996311
The most important thing to know about this SAC code is applicable GST rate
- Tariff up to ₹7,500 per night: 5% GST
- Tariff above ₹7,500 per night: 18% GST
HSN/ SAC code list for accommodation and related services
- 9963: Accommodation, food and beverage services
- 996312: Camp site services
- 996313: Recreational and vacation camp services
- 996321: Room or unit accommodation services for students in student residences
- 996322: Room or unit accommodation services provided by Hostels, Camps, Paying Guest and the like
- 996329: Other room or unit accommodation services nowhere else classified
- 996331: Services provided by restaurants, cafes and similar eating facilities including takeaway services, room services and door delivery of food
- 996332: Services provided by Hotels, Inn, Guest House, Club and the like including room services, takeaway services and door delivery of food
- 996333: Services provided in canteen and other similar establishments
- 996334: Catering Services in exhibition halls, events, marriage halls and other outdoor/indoor functions
- 996335: Catering services in trains, flights and the like
- 996336: Preparation or supply services of food, edible preparations, alcoholic and non-alcoholic beverages to airlines and other transportation operators
- 996337: Other contract food services
- 996339: Other food, edible preparations, alcoholic and non-alcoholic beverages serving services nowhere else classified
If your business involves multiple services like offering food along with rooms, you need to use both 996311 for room rental and 996331 for restaurant or food services in your GST invoices
Who Needs to Use SAC Code 996311?
Any business or individual who provides short-term paid accommodation to guests must use this code:
- Five-star and luxury hotels
- Budget hotels and economy lodges
- Boutique hotels
- Guesthouses (both private and government)
- Resorts and wellness retreats
- Serviced apartments and aparthotels
- Homestays registered under GST
- Online hotel aggregators and booking platforms
HSN/ SAC code needed when:
- Generating GST invoices: to guests for room charges
- Filing GSTR-1: returns showing outward taxable supplies
- Filing GSTR-3B: for monthly or quarterly tax summaries
- Registering services: under GST at time of enrollment
How to use HSN code 996311 on GST invoices
When you generate GST tax invoice for room accommodation, invoice must include SAC code 996311 with applicable tax amount. For guests who are businesses, GSTIN of guest must be mentioned on invoice so they can claim input tax credit (ITC) on accommodation expense. What should be mentioned in GST invoices:
- Name and GSTIN of the hotel or accommodation provider
- Name and GSTIN of the guest (if they are a business)
- Date of invoice and invoice number
- Description of service: Room Accommodation Services: SAC 996311
- Room tariff and number of nights
- Taxable value
- Applicable GST rate (12% or 18%)
- CGST, SGST, or IGST amount
- Total invoice value
Similar HSN/SAC codes
Many people confuse HSN 996311 with related codes. Here is quick comparison to help you use the right one:
996311 — Standard hotel and guesthouse room accommodation (most common for hotels)
If you run a resort that offers both rooms and outdoor activities or camps, you may need to split your billing between HSN Code 996311 and 996312 or 996313 depending on what the charge covers.
More HSN/ SAC code
conclusion
HSN Code 996311 is the designated service classification for room or unit accommodation services provided by hotels, guesthouses, inns, resorts, hostels, and other lodging establishments across India. Whether you are a hotel owner looking to set up your billing correctly, an accountant GST returns filings for a hospitality client, or business traveler trying to claim ITC, understanding SAC code 996311 will help you stay compliant and avoid costly errors.
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