Room Under SAC Code 996321

Room accommodation services for students cover providing hostel style rooms or units in student residences near schools, colleges and coaching centres. Operators offer furnished rooms, common facilities and basic support services on monthly or term based charges. Under GST, these student room services are classified under SAC 996321. This SAC code and its GST rate decide how much GST is charged on student stay charges. This supports students who need safe, convenient stay options near their institutes.

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996321 SAC Code GST Rate

Review old and new GST rates for Room under 996321 SAC Code.

Student room accommodation services under SAC 996321 are treated as accommodation services under GST. Earlier, different ways of describing hostel or student residences sometimes led to doubt about whether they should follow hotel style slabs or concessional treatment.

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 996321 for typical stays.

SAC Code

996321

Description

Room or unit accommodation services for students in student residences

New Rate

0 %
Exempted

Old Rate

0 %

Notes

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.

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

Student room accommodation services under SAC 996321 cover hostel style rooms and student residences. These services generally follow the lower 5 percent GST slab without input tax credit for standard tariffs and 18 percent with input tax credit for higher or premium offerings as per the latest slabs. Operators and educational institutions should review their fee structure, apply the correct GST rate and maintain clear disclosure in GST returns. For exempt or specially notified educational hostels, the latest GST circulars should be studied carefully.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996321 and GST compliance.

What is SAC code 996321 in GST for room services?

SAC 996321 is for room or unit accommodation services for students in student residences. It largely covers hostel style rooms or dormitories inside educational campus residences meant mainly for enrolled students.

Does SAC 996321 cover student room and hostel stay services?

Yes. Student rooms, dorm beds and similar on campus student housing offered by universities, colleges or recognised institutes are grouped under SAC 996321. The service is long term student accommodation rather than short tourist stays.

What GST rate applies to room services under SAC 996321?

Many genuine student accommodation services have been given exemptions or concessional treatment over time. Where taxable, rates often align with general accommodation slabs around 5% without ITC or 18% with ITC, depending on tariff, provider and latest notifications.

Is SAC 996321 used for per day and monthly room charges both?

Yes. Whether fees are charged daily, monthly or per term, if the service is student residence accommodation, SAC 996321 is usually used. The billing cycle does not change the underlying classification as student housing.

Can service providers claim ITC on services billed under SAC 996321?

Where student accommodation is exempt, input tax credit on related purchases is generally not allowed. If any part is taxable at regular rates, providers may claim ITC proportionately, subject to general rules for common input apportionment.

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.