GST for Hotels in India: Invoicing, Rates, SAC 996311 & ITC (2026)

General information for independent hotels — not tax advice. GST notifications change. Confirm rates and ITC with a qualified chartered accountant before you file.

GST on hotel bills in India still confuses owners and guests: what is GST on a hotel bill?, how much GST?, can we claim ITC?, missing SAC 996311, or invoices that corporate accounts reject. This guide is a practical 2026 refresh for independent hotels — aligned with the post–22 September 2025 (“GST 2.0”) room slabs.

Also see our shorter companion: Hotel GST in India (2026).

Hotel room GST rates (2026)

Do hotels charge GST? For GST-registered hotels, yes — taxable accommodation (and other taxable services) generally carry GST. Is GST applicable on hotel bills? Usually yes on commercial lodging; the rate and ITC rules depend on the room tariff slab below.

GST for accommodation is based on the actual room tariff per night (transaction value), not an old “declared rack rate” rule. The same idea applies to many lodge / lodging bills — if the supply is room or unit accommodation, the tariff slabs below are the starting point (confirm your category with your CA).

Room tariff per night	GST rate	Typical split (intrastate)	ITC on this slab (hotel)
Up to ₹7,500	5%	CGST 2.5% + SGST 2.5%	Generally not available
Above ₹7,500	18%	CGST 9% + SGST 9%	Generally available

Effective 22 September 2025, the mid band moved to 5% without ITC for tariffs up to ₹7,500. Above ₹7,500 remains 18% with ITC. Always re-check the latest GST Council notifications with your CA.

Declared tariff vs what the guest paid

Since mid-2019, GST for hotels is on the amount actually charged, not a published rack rate you never collected. If you sell at ₹6,000/night, apply the slab that matches ₹6,000 — not an ₹8,000 brochure rate.

How to calculate GST on hotel rooms (worked examples)

People search how much GST in hotel bill and how to calculate GST on hotel rooms for a reason — the slab is simple, but desks still mis-key it.

Steps

1. Take the actual per-night room tariff (before GST).
2. Pick the slab: ≤ ₹7,500 → 5%; above ₹7,500 → 18%.
3. Tax = tariff × rate.
4. Split as CGST + SGST (same state) or IGST (interstate B2B as configured).
5. Bill food / laundry on separate lines if they have different treatment.

Example A — ₹4,000 / night (≤ ₹7,500)

	Amount
Room tariff	₹4,000
GST @ 5%	₹200
CGST 2.5%	₹100
SGST 2.5%	₹100
Guest pays (room only)	₹4,200

Example B — ₹9,000 / night (> ₹7,500)

	Amount
Room tariff	₹9,000
GST @ 18%	₹1,620
CGST 9%	₹810
SGST 9%	₹810
Guest pays (room only)	₹10,620

Multi-night stays: apply the per-night tariff to the slab for each night’s charge as your CA / system configures (most PMS apply the rate on each night’s room charge).

SAC code 996311 (and why it matters)

SAC 996311 = room or unit accommodation services by hotels, inns, guest houses, clubs and the like.

Corporate guests filing returns often flag a missing or wrong SAC. Do not casually use a generic “other accommodation” code when the supply is hotel lodging. Search queries like hotel booking SAC code and 996311 usually mean this line.

Restaurant, laundry, and banquet lines usually need their own SAC / treatment — keep room and F&B clear on the folio.

What a correct hotel GST invoice must show

A valid tax invoice is more than a folio printout. Typical mandatory fields include:

• Title: “Tax Invoice”
• Unique invoice number and date
• Hotel name, address, GSTIN
• Guest name / address; guest GSTIN for B2B when they need ITC
• SAC 996311 on accommodation
• Stay dates, room type, nights, rate before tax
• Taxable value, GST rate, CGST + SGST or IGST
• Place of supply and total

If accounts payable rejects your bill, it is often one of: missing GSTIN, wrong SAC, or tax split.

Mini sample (room only, same state, ₹4,000 tariff)

Line	Amount
Room — 1 night @ ₹4,000 (SAC 996311)	₹4,000
CGST 2.5%	₹100
SGST 2.5%	₹100
Invoice total	₹4,200

How corporate guests get a GST invoice for hotel bookings

How can I get a GST invoice for my corporate travel hotel bookings? — ask at the property, early.

For the travelling employee / company

1. Tell the hotel you need a tax invoice (not only a booking voucher).
2. Share company name, billing address, and GSTIN before or at checkout.
3. Confirm the invoice shows SAC 996311, taxable value, rate, and CGST/SGST or IGST.
4. If you booked on an OTA, still request the hotel’s tax invoice for the stay — the OTA confirmation alone is usually not enough for ITC.

For the hotel

Capture GSTIN on the reservation, print a proper tax invoice from the PMS, and keep sequential numbering. That is what makes gst invoice hotels searches convert into bills AP will accept.

Can guests claim GST on hotel bills? (ITC)

Short answers owners and guests ask every week:

• Can we claim hotel bills in GST / claim GST on hotel bill? — Sometimes, for eligible B2B stays with a proper tax invoice. Eligibility sits with the guest’s GST position and the invoice quality.
• Can we take GST input on hotel bills? — Same idea as ITC; it is not automatic because GST is printed on the bill.
• Hotels at 5% (≤ ₹7,500) — that accommodation slab is designed without ITC for the hotel; guests should not assume credit just because GST appears.
• Hotels at 18% (> ₹7,500) — ITC may be available where rules allow and the invoice is complete.

Blocked credits and Section 17(5) issues are common — send edge cases to your CA.

CGST, SGST, and IGST on hotel bills

Situation	Typical tax
Same-state stay	CGST + SGST
Interstate B2B as configured	IGST

Can hotel charge IGST? Yes, when the supply is treated as interstate (often corporate billing with place of supply in another state). The combined rate is still 5% or 18% — IGST is the form of the tax, not a third slab.

Misconfigured software that always prints IGST for walk-ins in the same state creates avoidable disputes.

Restaurant and food is taxed separately

Room and food are billed under separate GST treatment. In hotels whose rooms stay at or below ₹7,500, the in‑house restaurant is generally 5% (no input credit). In “specified premises” — where any room crossed ₹7,500 in the previous year — restaurant service is often 18% (with input credit). Keep these on separate line items.

Common mistakes

1. Using outdated 12% mid-band thinking after the Sept 2025 change
2. Charging on rack rate instead of transaction value
3. Wrong SAC (not 996311)
4. Missing guest GSTIN on corporate invoices
5. Cash / walk-in stays without a tax invoice
6. Restaurant and room tax muddled on one line
7. Always printing IGST on same-state stays

How BitLegacy helps at the desk

Independent hotels need GST that matches the folio — not a spreadsheet after checkout.

BitLegacy’s hotel management software is built for Indian independent properties: GST-ready folio invoicing, CGST/SGST/IGST splits where configured, and SAC-aware accommodation lines so desk checkout stays calmer.

For period books your CA asks for at filing time — GST register and cash P&L in INR — see hotel GST register & Accounting and the Accounting product page (free Marketplace unlock).

See pricing for current plans, or start from software for small hotels.

What to do next

1. Confirm your current room-rate slabs with your CA (5% / 18% picture above).
2. Audit last month’s invoices for SAC 996311, GSTIN, and tax split.
3. Make sure your PMS applies GST on actual room rates, not obsolete rack logic.
4. Train front desk to collect company GSTIN when the guest asks for a corporate tax invoice.

Last updated: 13 September 2026.