February 25, 2023
Pranjal Gupta


As a business owner or startup founder offering accommodation services, it is important to understand the GST rates and SAC code associated with this category of service. In India, the Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption.

GST Rates for Accommodation Services

The GST rate for accommodation services depends on the type of accommodation offered:

  1. For hotels, inns, guesthouses, clubs and similar establishments, the GST rate is 12%
  2. For serviced apartments or other similar establishments, the GST rate is 18%
  3. For accommodation in hostels, the GST rate is 0% (zero-rated)

It is important to note that these rates may be subject to change based on government regulations.

SAC Code 9963 for Accommodation Services

Services Accounting Code (SAC) is a system of classification developed by the Government of India to classify services for levying GST. For accommodation services, the SAC code is 9963.

SAC code 9963 covers a wide range of services related to accommodation, including:

  1. Lodging services in hotels, motels, guest houses, inns, clubs, campsites or other similar establishments
  2. Services provided by serviced apartments, resorts and other similar establishments
  3. Services provided by dormitories, hostels and other similar establishments

It is important to ensure that the correct SAC code is used while filing GST returns to avoid any discrepancies and penalties.


As an accommodation service provider, it is important to stay updated about the GST rates and SAC code associated with your business. Understanding the GST rates and SAC code can help you in proper compliance and filing of GST returns.

Ensure that you have the right professional guidance and expert consultation to understand the GST regulations and comply with them in a timely manner.


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