Hotel Under SAC Code 996311

Hotel services cover providing short term or long term stay in hotels, lodges and guest houses with basic facilities like rooms, housekeeping and front desk support. Many properties also offer breakfast, Wi Fi and other add on services to make the stay comfortable. Under GST, hotel and guest house stay services are classified under SAC 996311. This SAC code and its GST rate decide how much GST is charged on room tariffs.

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996311 SAC Code GST Rate

Review old and new GST rates for Hotel under 996311 SAC Code.

Hotel services under SAC 996311 are treated as accommodation services under GST. In the earlier period, hotel stays were taxed at different slabs based on room tariff and type of property, which made billing and comparison slightly complex for both hoteliers and guests.

After the September 2025 rationalisation, most standard accommodation services under these codes generally fall in the 5 percent slab without input tax credit where tariff conditions are met, while higher value or premium stays may attract 18 percent with input tax credit as per the latest rules. Businesses should check the exact slab that applies to their category and tariff level.

The table below shows the latest standard GST rate for SAC code 996311 for typical stays.

SAC Code

996311

Description

Room or unit accommodation services provided by Hotels, INN, Guest House, Club etc

New Rate

5 %
Essential

Old Rate

12 %

Notes

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.

While issuing invoices for accommodation services under this SAC code, service providers should clearly show the room tariff, applicable GST rate and amount so that guests and corporate clients understand the tax break up. The same SAC code and rate should be reflected in GSTR 1 and GSTR 3B for outward supplies so that records remain consistent and easy to explain during checks.

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Explore More SAC Codes Under 9963

Practical Classification Guidance

In day to day use, businesses should pick the SAC code that best matches the main nature of their hospitality service. If the focus is more on accommodation, restaurant food or event catering, another SAC within 9963 may be more suitable. Correct SAC selection and GST rate application help avoid future disputes, keep the input tax credit position clear and make GST records easier to explain during audits or departmental checks.

Conclusion

Hotel services under SAC 996311 cover stays in hotels, lodges and guest houses with basic facilities and add on services. After the September 2025 changes, these services generally attract 5 percent GST without input tax credit for eligible tariffs and 18 percent with input tax credit for higher slabs. Hotel owners and accountants should classify room tariffs correctly, apply the right GST rate on every bill and keep consistent reporting in GST returns. For mixed use or luxury properties, it is wise to review the latest GST notifications and seek professional advice.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996311 and GST compliance.

What is SAC code 996311 in GST?

SAC 996311 is for room or unit accommodation services provided by hotels, inns, guest houses, clubs and similar places. It covers short stay rooms that are rented per day or per night to guests for business or personal use.

Does SAC 996311 cover hotel, guest house and club stays?

Yes. Stays in hotels, lodges, resorts, guest houses, clubs and similar properties are classified under SAC 996311 when the main service is providing furnished accommodation with basic guest facilities.

What GST rate applies to services under SAC 996311?

The GST rate depends mainly on room tariff and scheme. Under the current structure, many mid range rooms are taxed at 5% without input tax credit and higher tariff rooms at 18% with credit. Always check the latest slab.

Is SAC 996311 used for both business and leisure hotel stays?

Yes. SAC 996311 is based on the type of service, not the purpose of travel. Whether guests stay for business meetings, tourism, weddings or personal visits, hotel room accommodation is generally classified under 996311.

Can hotels claim ITC on services billed under SAC 996311?

Hotels can usually claim input tax credit on eligible costs like cleaning, security or maintenance when they charge 18% with ITC on room tariffs. When they opt for concessional 5% without ITC, they normally cannot claim credit on related inputs.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.