Unit Accommodation Services Under SAC Code 996329
Other room or unit accommodation services cover temporary housing arrangements that do not clearly fall in standard hotel, hostel or student residence categories. This may include short term serviced units or special purpose accommodation. Under GST, these other accommodation services are classified under SAC 996329. This SAC code and its GST rate decide how much GST is charged on such unit based stays. This helps owners offer flexible stay options for guests and project teams.
Unit Accommodation Services GST Rate for SAC Code 996329
Other room or unit accommodation services under SAC 996329 are treated as accommodation services under GST. Initially, there was some confusion on how to place special or flexible stay arrangements in the standard GST slab structure.
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 996329 for typical stays.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
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
Other accommodation services under SAC 996329 cover flexible or special purpose stays that do not fall under standard hotel or hostel categories. These services generally follow the 5 percent GST slab without input tax credit for eligible tariffs and 18 percent with input tax credit for higher or premium offerings. Service providers should carefully identify the right slab for each type of unit, charge the correct GST rate on invoices and maintain consistent reporting in GST returns. For complex or mixed use accommodation models, it is sensible to check the latest GST rules and seek expert advice.
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 is SAC code 996329 in GST?
SAC 996329 covers other room or unit accommodation services not elsewhere classified. It is a residual code for special or unusual accommodation types that do not fit standard hotel, student or hostel categories.
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Does SAC 996329 cover temporary or unit based accommodation services?
Yes. Temporary modular housing, service apartments or special housing blocks that do not match earlier accommodation descriptions can use SAC 996329, provided the main supply is room or unit accommodation for guests or residents.
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What GST rate applies to services under SAC 996329?
Rates for SAC 996329 follow general accommodation rules. Lower tariffs may fall in concessional 5% without ITC, while higher or premium stays may attract 18% with ITC. Specific exemptions or schemes can change treatment, so actual rate must be checked case by case.
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Is SAC 996329 used for short term housing or service apartments?
Yes. Short term serviced apartments, guest flats or other special units rented with housekeeping and utilities can be coded under SAC 996329 if they are not better covered by hotel or hostel codes. Long term pure residential leasing remains outside this group.
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Can businesses claim ITC on services billed under SAC 996329?
Businesses providing taxable accommodation under SAC 996329 can usually claim ITC on eligible inputs, especially when charging 18% with ITC. If they opt for concessional rates without ITC or their supplies are exempt, then related input credits are not available.