Accommodation 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.

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996322 SAC Code GST Rate

Review old and new GST rates for Accommodation under 996322 SAC Code.

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.

SAC Code

996322

Description

Room or unit accommodation services provided by Hostels, Camps, Paying Guest etc

New Rate

5 %
Essential

Old Rate

12 %

Notes

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.

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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

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996322 and GST compliance.

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.

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.

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.

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.

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.

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.