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Understanding the GST rates and SAC code 9963 for accommodation services is essential for business owners and startup founders in India. The Goods and Services Tax (GST) is a value-added tax applied to the majority of goods and services consumed domestically. When it comes to accommodation services, it is crucial to consider the applicable GST rates, which can vary based on factors such as the type of accommodation and the room tariff.
SAC Code 9963 pertains to accommodation services in the Services Accounting Code (SAC) system, developed by the Government of India for GST purposes. It encompasses various services such as:
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SAC Code 9961 under GST can be classified in the following ways:
| SAC Code | Description | Rates(%) |
|---|---|---|
| 9963 | Services by way of renting of residential dwelling for use as residence. | Nil |
| 9963 | Services by a person by way of-(a) conduct of any religious ceremony;(b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act:Provided that nothing contained in entr(b) of this exemption shall apply to,-(i) renting of rooms where charges are 10,000 rupees or more per day;(ii) renting of premises, community halls, kalyana mandapam or open area, and the like where charges are 10,000 rupees or more per day;(iii) renting of shops or other spaces for business or commerce where charges are 10,000 rupees or more per month. | Nil |
| 9963 | (i) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | 5 %- No ITC |
| 9963 | (iii) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | 18% |
| 9963 | Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having Value of supply( declared tariff replaced from 27/07/18)of a unit of accommodation below 1000 rupees per day or equivalent. Explanation.-Value of Supply includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | Nil |
| 9963 | Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day Explanation.- Value of supply( declared tariff replaced from 27/07/18) includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | 12% |
| 9963 | Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/and above but less than Rs 7500/per room per day Explanation.- Value of supply( declared tariff )replaced from 27/07/18 includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | 18% |
| 9963 | Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/and above per day per room. Explanation.- Value of supply( declared tariff replaced from 27/07/18) includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | 28% |
| 9963 | Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, having licence or permit or by whatever name called to serve alcoholic liquor for human consumption. | 18% |
| 9963 | Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable consideration. | 18% |
| 9963 | (v) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature. | 18% |
| 9963 | Bundled Supply, by way of or as part of any service or in any other manner whatsoever, of goods, including but not limited to food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) together with renting of such premises. | 18% |
| 9963 | Other Accommodation, food and beverage services | 18% |
| 9963 | (i) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | 5% |
| 9963 | (i) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. Explanation 1.- This item includes such supply at a canteen, mess, cafeteria or dining space of an institution such as a school, college, hospital, industrial unit, office, by such institution or by any other person based on a contractual arrangement with such institution for such supply, provided that such supply is not event based or occasional. | 5% |
| 9963 | (ia) Supply, of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms. | 5% |
| 9963 | (iii) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. | 18% |
| 996311 | Room or unit accommodation services provided by Hotels, INN, Guest House, Club etc | 18% |
| 996312 | Camp site services | 18% |
| 996313 | Recreational and vacation camp services | 18% |
| 996321 | Room or unit accommodation services for students in student residences | 18% |
| 996322 | Room or unit accommodation services provided by Hostels, Camps, Paying Guest etc | 18% |
| 996329 | Other room or unit accommodation services n.e.c. | 18% |
| 996331 | Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food. | 18% |
| 996332 | Services provided by Hotels, INN, Guest House, Club etc including Room services, takeaway services and door delivery of food. | 18% |
| 996333 | Services provided in Canteen and other similar establishments | 18% |
| 996334 | Catering Services in Exhibition halls, Events, Marriage Halls and other outdoor/indoor functions. | 18% |
| 996335 | Catering services in trains, flights etc. | 18% |
| 996336 | Preparation and/or supply services of food, edible preparations, alcoholic & non-alcoholic beverages to airlines and other transportation operators | 18% |
| 996337 | Other contract food services | 18% |
| 996339 | Other food, edible preparations, alcoholic & non-alcoholic beverages serving services n.e.c. | 18% |
The entire content on this page has been arranged to the best of the author’s understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
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