Hotel Catering Under SAC Code 996332

Hotel catering services cover providing food and beverage services within hotels, including in room dining, buffets, banquets and restaurant service for staying guests and walk in customers. Hotels plan menus, cook meals and serve them in rooms, restaurants or banquet halls. Under GST, such hotel catering services are classified under SAC 996332. This SAC code and its GST rate decide how much GST is charged on hotel food and catering bills.

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996332 SAC Code GST Rate

Review old and new GST rates for Hotel Catering under 996332 SAC Code.

Hotel catering services under SAC 996332 are treated as restaurant and catering services under GST. In the earlier phase, there was some complexity in applying different rates for in room dining, buffet and banquet services within hotels.

After the September 2025 rationalisation, most standard restaurant and catering services under these codes generally fall in the 5 percent slab without input tax credit where they qualify as stand alone restaurant style services. Certain event or input intensive catering models can attract 18 percent with input tax credit based on the latest rules and notifications.

The table below explains the current GST rate applicable to SAC code 996332 for typical services.

SAC Code

996332

Description

Services provided by Hotels, INN, Guest House, Club etc including Room services, takeaway services and door delivery of food.

New Rate

18 %
Standard

Old Rate

18 %

Notes

Treated as composite hotel / club supply of food and services. Not specifically changed by the 56th Council; standard 18% with ITC continues where taxed under this entry.

When issuing invoices for services under this SAC code, restaurants and caterers should clearly show the taxable value of food and service, the GST rate and the tax amount so that customers understand the bill. The same SAC code and rate treatment should be used in GSTR 1 and GSTR 3B for outward supplies to keep records clean and consistent.

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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 catering services under SAC 996332 cover in room dining, buffets, banquets and restaurant food served within hotels. These services generally follow the 5 percent GST slab without input tax credit for restaurant style supplies and 18 percent with input tax credit in some input heavy or event focused models. Hotels should identify the correct category for each outlet or banquet, charge the proper GST rate on bills and keep the same treatment in GST returns. For complex banquet packages, it is sensible to review the latest GST rules and consult a tax professional.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996332 and GST compliance.

What is SAC code 996332 in GST?

SAC 996332 covers food and beverage services provided by hotels, inns, guest houses, clubs and similar establishments. It includes in house restaurants, coffee shops, room service and takeaway counters run by these properties.

Does SAC 996332 cover hotel catering and in room dining services?

Yes. When hotels serve food in restaurants, coffee shops, banquets or guest rooms, those supplies generally fall under SAC 996332. It separates the food service from the core room accommodation under SAC 996311.

What GST rate applies to hotel catering services under SAC 996332?

Rates are broadly similar to restaurant services. Many hotel restaurants charge 5% without ITC, while some premium or special category services may fall at 18% with ITC. Banquet packages combining hall and food can have separate treatment.

Can banquets and events inside hotels also use SAC 996332?

Yes. When the main component is food and beverage service for functions hosted inside hotel premises, SAC 996332 is usually used. If the dominant supply is hall rental, an additional SAC for renting may also be mentioned.

Can hotels claim ITC on food and service inputs under SAC 996332?

Hotels following 5% without ITC cannot claim credit on food inputs used for such supplies. Where they operate under 18% with ITC, they may claim input tax credit within general GST restrictions, for example excluding certain personal or blocked items.

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.