GST Live

GST on Hotel Accommodation: Rate, SAC Code & Applicability

What is the GST rate and SAC code for Hotel Accommodation in India? This guide covers the rate, SAC code, applicability and input tax credit. GST on Hotel Accommodation — at a...

VS Vivek SharmaTax & Compliance Expert
Published
Updated
Reading time
4 min
Views
15
Questions
4 answered
  • Expert Reviewed
  • Medium Complexity
Topic
GST
Published
August 20, 2026
Last updated
Sep 24, 2026
Reading time
4 min
0:00
Last updated: September 2026Applies to: FY 2026-27Verified against: Government sources

GST on Hotel Accommodation explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

What is the GST rate and SAC code for Hotel Accommodation in India? This guide covers the rate, SAC code, applicability and input tax credit.

GST on Hotel Accommodation — at a glance

ServiceHotel Accommodation
GST rate12% (tariff up to ₹7,500/day) — 18% (above ₹7,500/day)
SAC code9963 (Accommodation services)

Applicability

Room tariff decides the slab; the very low tariff category may be exempt/12%.

GST registration & compliance for Hotel Accommodation

  • Register for GST once turnover crosses ₹20 lakh for services (₹10 lakh in special-category states)
  • Charge GST at the applicable rate and quote the correct SAC code on invoices
  • Claim input tax credit on your business inputs (where the service is taxable with ITC)
  • File GSTR-1 and GSTR-3B each period; exports of services can be zero-rated under a LUT

Input tax credit

Where Hotel Accommodation is taxable with ITC, your business customers can claim credit of the GST charged, provided they use the service for business. Some concessional-rate services (like certain 5% categories) come without ITC — factor this into your pricing.

GST on Hotel Accommodation, handled for you

TaxClue manages GST registration, invoicing, returns and refunds for service businesses — fully online.

Talk to a GST expert →
Quick recapKey facts & short answers

Key Facts About GST on Hotel Accommodation

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is the GST rate on Hotel Accommodation?

The GST rate on Hotel Accommodation is 12% (tariff up to ₹7,500/day) — 18% (above ₹7,500/day).

What is the SAC code for Hotel Accommodation?

The applicable SAC heading for Hotel Accommodation is 9963 (Accommodation services).

GST on Hotel Accommodation: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Why This Matters

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in gst are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.

A clear understanding of the applicable law helps you make confident, well-informed business decisions. TaxClue's experts regularly assist businesses across India with end-to-end gst support at transparent, affordable pricing. Timely compliance also improves your credibility with banks, investors and government authorities. Reviewing your obligations with a professional at least once a year keeps your business audit-ready and stress-free.

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in gst are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster.

Was this article helpful?
VS
About the author
846 articles
Vivek Sharma Verified expert Tax & Compliance Expert

Last reviewed: Live
Share WhatsAppLinkedInXTelegramFacebookEmail

Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 4 questions readers ask most on this topic.

The GST rate on Hotel Accommodation is 12% (tariff up to ₹7,500/day) — 18% (above ₹7,500/day).

The applicable SAC heading for Hotel Accommodation is 9963 (Accommodation services).

Yes, where the service is taxable with ITC; some concessional 5% categories are without ITC.

Once turnover crosses ₹20 lakh (₹10 lakh in special-category states), or for inter-state/e-commerce supply.

Readers' favourites

Most viewed articles

All articles →
  1. 01GST State Code and Jurisdiction for West Bengal1,053 reads
  2. 02Variable Dearness Allowance (VDA) — Calculation Method892 reads
  3. 03GST State Code and Jurisdiction for Karnataka792 reads
  4. 04GST State Code and Jurisdiction for Punjab555 reads
  5. 05Shorter Notice for Board Meeting and General Meeting — Rules and...525 reads
  6. 06Income Tax Compliance Calendar 2026-27: All Due Dates Under ITA 2025507 reads
  7. 07Tax Comparison of All Business Structures in India — FY 2026-27483 reads
  8. 08Accounting Entries under GST: Complete Journal Entry Guide with...465 reads
  9. 09GST State Code and Jurisdiction for Kerala456 reads
  10. 10GST State Code and Jurisdiction for Uttarakhand453 reads
Across topics

Related guides

All guides →
◉
State-wise GuidesGST State Code and Jurisdiction for West Bengal1,053 reads
⚖
Labour ComplianceVariable Dearness Allowance (VDA) — Calculation Method892 reads
◉
State-wise GuidesGST State Code and Jurisdiction for Karnataka792 reads
◉
State-wise GuidesGST State Code and Jurisdiction for Punjab555 reads
Drafting Shorter Notice for Board Meeting and General Meeting — Rules and...525 reads
₹
Direct TaxIncome Tax Compliance Calendar 2026-27: All Due Dates Under ITA 2025507 reads
₹
Income TaxTax Comparison of All Business Structures in India — FY 2026-27483 reads
§
Accounting Standards & BookkeepingAccounting Entries under GST: Complete Journal Entry Guide with...465 reads
◉
State-wise GuidesGST State Code and Jurisdiction for Kerala456 reads
◉
State-wise GuidesGST State Code and Jurisdiction for Uttarakhand453 reads