Accommodation Services Under SAC Code 996322
Hostel and paying guest accommodation services cover providing rooms or beds in hostels, shared flats or PG setups for working people, students and travellers. Operators offer furnished spaces with shared kitchens or meals and other basic facilities. Under GST, these hostel and PG accommodation services are classified under SAC 996322. This SAC code and its GST rate decide how much GST is charged on such stay services. This supports working people and students who need affordable long stay options.
Accommodation Services GST Rate for SAC Code 996322
Hostel and paying guest accommodation services under SAC 996322 are treated as accommodation services under GST. In the earlier years, there were questions on how to tax long stay PG and hostel facilities as compared to short stay hotel rooms.
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 996322 for typical stays.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
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.
Explore Other SAC Codes Under 9963
This SAC code is part of the accommodation, food and beverage services group 9963, which covers hotel stays, hostels and PGs, student residences, restaurant services, catering services and other related hospitality activities. Each six digit SAC within this group is meant to capture a specific type of stay or food service so that GST reporting becomes more accurate.
Below are the major related six-digit SAC codes under parent 9963
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
Hostel and PG accommodation services under SAC 996322 cover shared or individual rooms for students and working people. These services now broadly follow the 5 percent GST slab without input tax credit for eligible tariffs and 18 percent with input tax credit for higher value or premium stays. PG and hostel operators should map their tariffs correctly, apply the proper GST rate on rent receipts or invoices and keep the same classification in GST returns. For long term leases and special rental models, it is wise to review the latest GST guidance and consult a tax professional.
Important Disclaimer
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.
Frequently Asked Questions
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What does SAC code 996322 cover in GST?
SAC 996322 covers room or unit accommodation services provided by hostels, camps, paying guest facilities and similar setups. It is used mainly for non student long stay or medium stay housing given on a room basis with basic services.
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Does SAC 996322 include paying guest and student accommodation services?
Yes. Paying guest houses, private hostels and some student hostels outside campus are grouped under SAC 996322. It applies where owners provide furnished rooms, housekeeping and common facilities for a fixed rent per bed or room.
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What is the GST rate for accommodation services under SAC 996322?
Historically many hostel and PG accommodations enjoyed exemptions below certain tariffs or for unregistered tenants. When taxable, they usually follow hotel slabs, with 5% without ITC or 18% with ITC based on tariff and scheme. Latest notifications must always be checked.
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Should long stay hostel or PG bookings use SAC 996322?
Yes. Even when tenants stay for months, if the business model is hostel or PG style managed accommodation with services, SAC 996322 is generally appropriate. Pure lease of unfurnished residential property, however, is treated differently under GST.
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Is ITC available on GST paid for SAC 996322 accommodation services?
Where hostel or PG services are taxable and charged with GST at normal rates, owners may claim ITC on eligible costs like repairs and utilities. If the service is exempt or under a no ITC scheme, credits linked to that supply are blocked.