9963 SAC Code: Accommodation, food & beverage services
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.
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Scope of SAC Code 9963
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:
- Lodging services in establishments like hotels, motels, guest houses, inns, clubs, campsites, and similar accommodations.
- Services provided by serviced apartments, resorts, and other similar establishments.
- Services provided by dormitories, hostels, and other similar establishments.
Categorisation of SAC Code 9963
SAC Code 9963 under GST can be classified in the following ways:
| SAC Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 9963 | Services by way of renting of residential dwelling for use as residence. | 0% without ITC | 0% without ITC | Renting of a residential dwelling for use as residence is an established GST exemption. It remains 0% in both regimes. Important nuance (for your notes column in Excel or page content): where a residential dwelling is rented to a registered person for business, certain periods had RCM at 18%. But the description you have given (“for use as residence”) corresponds to the core exempt entry, so the headline rate stays 0% without ITC. |
| 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. | 0% without ITC | 0% without ITC | (a) Conduct of religious ceremonies is fully exempt. (b) Renting of precincts of a religious place meant for general public by eligible trusts / bodies is exempt up to the stated thresholds: rooms < ₹10,000 per day, halls / open areas < ₹10,000 per day, shops / business spaces < ₹10,000 per month. Once these limits are crossed, the renting portion becomes taxable (normally 18% with ITC) under the same SAC. GST 2.0 does not change these exemption thresholds. |
| 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% without ITC | 5% without ITC | This is the standard restaurant rate. Ordinary restaurants, eating joints, messes and canteens (not located in high tariff hotels with room tariff ≥ ₹7,500 per day) are taxed at 5% without ITC. Input tax credit is blocked for this concessional rate. Only certain categories (like specified restaurant services within high tariff hotels or special bundled supplies) move to 18% with ITC. The GST 2.0 slab simplification retains this 5% restaurant rate; there is no change in the headline rate for this SAC entry. |
| 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% with ITC | 18% with ITC | This is the classic “restaurant inside high tariff hotel” category. It has always been kept at the standard rate because it is seen as a premium service. Ordinary restaurants are at 5% without ITC, but once the restaurant is in a hotel (or similar property) where any room has tariff of ₹7,500 or more per day, the food service is at 18% with ITC. GST 2.0 leaves this treatment unchanged. |
| 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. | 0% without ITC | 5% without ITC | Earlier, very low tariff rooms below ₹1,000 per day were fully exempt. Under the new structure, accommodation up to ₹7,500 per day has been moved to a single concessional 5% without ITC slab, so this specific “below ₹1,000” band shifts from 0% to 5% without ITC. Effectively, the exemption is withdrawn and replaced with a low rate, while higher tariff rooms are addressed in the other slabs below. |
| 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% with ITC | 5% without ITC | This mid range hotel band used to carry a 12% rate with ITC. With 12% removed as a standard slab, this entire band is rationalised into the new 5% without ITC rate for hotel rooms up to ₹7,500 per day. ITC is no longer allowed under this concessional slab, so projects and pricing models in this band need to factor in the loss of credit but lower headline rate. |
| 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% with ITC | 5% without ITC | Earlier, this higher mid range band was taxed at 18% with ITC. Under GST 2.0, all hotel rooms up to ₹7,500 per day are moved to a uniform 5% without ITC rate. So for this slab, there is a clear downward shift in the headline rate but ITC becomes unavailable. Only rooms above ₹7,500 stay at 18% with ITC. |
| 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. | 18% with ITC | 18% with ITC | Premium / luxury accommodation at or above ₹7,500 per day remains at 18% with ITC. Earlier proposals that had much higher rates have already been rationalised, so as on 21 Sep 2025 and under GST 2.0 this band continues at 18% with full ITC availability. This is also the room tariff condition that triggers the 18% restaurant rate in the first row. |
| 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% with ITC | 18% with ITC | Serving alcoholic liquor shifts the restaurant into the higher tax bucket. Such licensed restaurants have generally been taxed at 18% with ITC while non liquor restaurants are at 5% without ITC. The rate rationalisation retains this distinction, so there is no change for this entry. |
| 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% with ITC | 18% with ITC | Standard outdoor catering, banqueting and similar event catering remain at 18% with ITC. Only a few very specific government related catering services have concessional treatment; this broad outdoor catering entry itself has not been put in the 5% slab, so old and new headline rates are both 18% with ITC. |
| 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% with ITC | 18% with ITC | This is basically event based catering in specialised venues. It has been aligned with outdoor catering at 18% with ITC and continues so under GST 2.0. Short term, event based nature and bundled service character are why it is not put in the simpler 5% restaurant category. |
| 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% with ITC | 18% with ITC | Here the supplier provides both the venue and catering as one bundle. This has consistently been treated as a composite supply taxed at 18% with ITC, reflecting the overall event management character. Rationalisation does not carve out a separate slab for this bundle, so the headline rate remains 18% with ITC in the new regime. |
| 9963 | Other Accommodation, food and beverage services | 18% with ITC | 18% with ITC | This is the residual bucket for 9963. If a particular accommodation or F&B service does not fall under the exempt entries (like renting of residential dwelling for residence) or concessional 5% restaurant / hotel room slabs, it will typically fall here at 18% with ITC. GST 2.0 rationalisation keeps this as the standard rate for such residual services. |
| 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% without ITC | 5% without ITC | This covers the usual standalone restaurants, eating joints, messes and canteens, whether food is consumed on premises or taken away. They are taxed at a concessional 5% with no ITC on inputs. GST 2.0 did not change this headline rate. |
| 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% without ITC | 5% without ITC | Same rate as general restaurants. This entry just clarifies that canteens or cafeterias run by or for institutions are also covered by the 5% restaurant slab, as long as they are regular ongoing services and not one off or event based catering. ITC remains blocked. |
| 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% without ITC | 5% without ITC | Railway catering, whether on board or on platforms, has been aligned to the concessional restaurant rate. It is taxed at 5% without ITC, and this treatment continues under the post 22 Sep 2025 structure. |
| 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% with ITC | 18% with ITC | These are restaurant services in specified high tariff premises. They are treated as premium supplies and charged at 18% with ITC. The 56th Council meeting only clarified that a standalone restaurant cannot self declare itself as such premises; the rate itself remains 18% with ITC. |
| 996311 | Room or unit accommodation services provided by Hotels, INN, Guest House, Club etc | 12% with ITC | 5% without ITC | Earlier, accommodation in this category generally attracted 12% with ITC for mid range tariffs, with 0% for very low tariff rooms and 18% with ITC for high tariff “luxury” rooms. Under the new structure, typical hotel rooms up to ₹7,500 per day are at 5% without ITC, while higher tariff rooms continue at 18% with ITC. Your sheet is using the mid segment as the “headline” rate. |
| 996312 | Camp site services | 12% with ITC | 5% without ITC | Treated in practice like hotel style accommodation. Earlier slabs mirrored hotels (exempt for very low tariffs, 12% for standard, 18% for high end). Post rationalisation, camp site stays up to the notified tariff threshold follow the 5% without ITC pattern; high value luxury packages remain at 18% with ITC. |
| 996313 | Recreational and vacation camp services | 12% with ITC | 5% without ITC | Vacation and recreational camps that bundle stay and basic facilities were generally taxed at 12% with ITC under the mid range accommodation slab. After 22 Sep 2025, they follow the 5% without ITC slab for typical packages up to the threshold, with premium offerings continuing at 18% with ITC. |
| 996321 | Room or unit accommodation services for students in student residences | 0% without ITC | 0% without ITC | Where this code is used for room / unit accommodation provided by or on behalf of educational institutions as part of student housing, it is treated on par with exempt education related residential accommodation, effectively 0% without ITC both before and after GST 2.0. If a provider uses this SAC for short term commercial stays, the hotel style slabs (old 12% → new 5%) would apply, but your “typical” case is the exempt student residence. |
| 996322 | Room or unit accommodation services provided by Hostels, Camps, Paying Guest etc | 12% with ITC | 5% without ITC | Commercial hostels, PGs and similar short / medium term accommodation have generally followed the hotel accommodation slabs: mid range stays at 12% with ITC earlier, high end at 18%. Under GST 2.0, typical tariff based stays align to 5% without ITC up to ₹7,500 and 18% with ITC above that. Long term renting of residential dwellings purely for use as residence can still fall under the separate exemption, but that is fact specific and noted separately in your content, not in this “headline” rate. |
| 996329 | Other room or unit accommodation services n.e.c. | 12% with ITC | 5% without ITC | This residual accommodation category is treated like 996311/996322. Old structure: mid range at 12% with ITC, luxury at 18% with ITC, low tariff exempt. New structure: typical accommodation up to ₹7,500 at 5% without ITC, with the luxury band staying at 18% with ITC. |
| 996331 | Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food. | 5% without ITC | 5% without ITC | Standalone and ordinary restaurant services have been at 5% without ITC throughout, with 18% with ITC reserved only for specific, higher value categories (for example certain restaurant services combined with other supplies in specified conditions). GST 2.0 keeps the mainstream restaurant rate at 5% without ITC, so there is no change in the “headline” rate for this SAC. |
| 996332 | Services provided by Hotels, INN, Guest House, Club etc including Room services, takeaway services and door delivery of food. | 18% with ITC | 18% with ITC | Treated as composite hotel / club supply of food and services. Not specifically changed by the 56th Council; standard 18% with ITC continues where taxed under this entry. |
| 996333 | Services provided in Canteen and other similar establishments | 18% with ITC | 18% with ITC | Canteen / mess style catering is generally taxable at 18% with ITC. No “from → to” entry for this SAC in the 56th Council Annexure, so earlier rate continues. |
| 996334 | Catering Services in Exhibition halls, Events, Marriage Halls and other outdoor/indoor functions. | 18% with ITC | 18% with ITC | Outdoor / banquet catering continues at 18% with ITC. The 56th Council decisions on hospitality did not re-rate this SAC. |
| 996335 | Catering services in trains, flights etc. | 18% with ITC | 18% with ITC | Rail / air catering aligned with organised catering at 18% with ITC. No explicit change for this SAC; rate remains the same. |
| 996336 | Preparation and/or supply services of food, edible preparations, alcoholic & non-alcoholic beverages to airlines and other transportation operators | 18% with ITC | 18% with ITC | Contract food supply to transport operators is treated as contract catering and stays at 18% with ITC in typical cases. |
| 996337 | Other contract food services | 18% with ITC | 18% with ITC | Residual contract catering bucket. Standard 18% with ITC; not targeted for change in the 56th Council Annexure. |
| 996339 | Other food, edible preparations, alcoholic & non-alcoholic beverages serving services n.e.c. | 18% with ITC | 18% with ITC | Residual food serving category. Typical rate remains 18% with ITC, unless a separate exemption / concession applies. |
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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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