Skip to content50% off₹750/user/month ₹1,500
SimpleERP
Start free trialTalk to us
SimpleERP
Sign inStart free trial

SAC codes

SAC code for hotel accommodation: 996311

Rooms are taxed by the value of the room per day, and the slabs were changed from 22 September 2025, so the rate on your bill depends on the tariff.

Start free trialTalk to us

In short

Hotel and guest house rooms use SAC 996311, with the GST rate set by the room value per day in slabs revised from 22 September 2025. SimpleERP lets you save each room type with its own rate.

Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.

The data

SAC 996311 at a glance

ItemValue
6-digit SAC996311
4-digit group9963: accommodation, food and beverage services
Chapter 99 headingRoom or unit accommodation services provided by hotels, inns, guest houses, clubs and the like
Usual GST rateSet by the value of supply per room per day, in slabs revised from 22 September 2025 (as notified; check the GST portal)
Reverse chargeForward charge for most suppliers; rooms sold through an e-commerce platform can make the platform pay the tax in some cases
ExemptionSome low-value and specified accommodation has its own entries; check the current notification
Who typically bills itHotels, lodges, guest houses, service apartments and clubs with rooms
Codes from the CBIC services classification; room slabs as notified, changed on 22 September 2025. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications, GST Council: rate changes effective 22 September 2025. Verified .

Which SAC code goes on a hotel accommodation invoice?

Use 996311, room or unit accommodation services provided by hotels, inns, guest houses, clubs and the like. It sits in group 9963, accommodation, food and beverage services, under chapter 99 (services). Daily and weekly room stays fit here. Meals billed by the hotel restaurant and banquet catering have their own codes in the same group.

Hotel Annapoorna Residency in Coimbatore, Tamil Nadu, hosts dealers visiting Lakshmi Steel Furnitures and bills the room nights under 996311, with breakfast shown on its own line.

What GST rate applies to hotel rooms?

The rate on a room depends on the value of supply per unit per day, and lower and higher tariffs fall in different slabs, with different input tax credit rules. The slabs and the credit conditions were revised by the GST Council from 22 September 2025, so check the current notification against your tariff before you set the rate. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

  • The slab follows the price actually charged per room per day, not the rack rate
  • Extra bed charges are part of the room value
  • A lower slab can come without input tax credit, so check the condition
  • Restaurant and banquet services can depend on the hotel's room tariffs

A hotel accommodation invoice line in SimpleERP

Save each room type, such as Standard room and Suite, as a service with SAC 996311 and the rate that matches its tariff slab. Room nights are the quantity, and meals go on their own lines.

  • SAC 996311 prints on each room line
  • Place of supply for a room is the hotel's location, so the guest is charged CGST and SGST
  • Room nights sit under 996311 in the HSN/SAC summary for GSTR-1
  • Corporate guests get their GSTIN on the invoice for their records

Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.

Three room nights under SAC 996311 with breakfast on its own line.

When is reverse charge or an exemption involved?

Hotels charge GST under forward charge on direct bookings. Rooms sold through an e-commerce platform are one of the cases where the platform can be liable to pay the tax under section 9(5), depending on the hotel's registration. Low-value and specified accommodation has its own entries. Check each against the current notification.

  • Direct booking: the hotel charges and pays GST
  • Platform booking: the platform may pay the tax in some cases
  • Place of supply is the hotel's location even for out-of-state guests
  • Check exemption entries for low-value stays

Sources

FAQ

Questions, answered

My room tariff is near the slab boundary. Which rate do I use?

The rate follows the value actually charged per room per day, including extra bed charges, after any discount. Rooms priced above and below a boundary can carry different rates. Check the current slab in the notification, revised from 22 September 2025, for each room type.

A guest from Karnataka stays at my Tamil Nadu hotel. Do I charge IGST?

No. For accommodation the place of supply is where the hotel is, so a Tamil Nadu hotel charges CGST and SGST to every guest, and the guest's company cannot claim it as IGST. SimpleERP picks the split from the place of supply.

Rooms booked through an online travel platform: who pays the GST?

In some cases the platform is liable under section 9(5) to pay the tax on rooms sold through it, depending on the hotel's registration status. Check your platform agreement and the current rule with your CA, and do not pay the same tax twice.

Do I bill breakfast on the same line as the room?

If breakfast is included in the tariff, it is usually part of the room supply. If guests pay for meals separately, bill them as restaurant service on their own line, with the rate that applies to your hotel's restaurant.

Related

Run your whole business from one simple place.

Seven days free. No card. Your first GST invoice in minutes.

Start free trialTalk to us