A guest house supplies accommodation under SAC 996311. From 22 September 2025, a room with a value of supply up to Rs 7,500 per unit per day carries 5% GST without input tax credit, which covers almost every guest house. The bill should show each room, nights stayed, tariff actually charged per night, meals if provided, the booking platform for online bookings, the guest's name and company GSTIN where relevant, and the guest house's registration status.
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Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a guest house invoice needs
Room and nights
Each room booked should appear with the number of nights and the tariff per night. Because GST depends on the value per unit per day, the bill must make the nightly value visible.
Booking source
Direct, walk-in or online travel platform. For guest houses not liable to register, tax on platform bookings may be payable by the platform, so the source decides who pays.
Meals provided
Breakfast or dinner provided to guests may be billed with the room or separately. Separate lines make it clear which part is accommodation and which is food service.
Guest name and ID reference
Local police rules usually require guest records. Linking the bill to the guest register entry makes it easy to answer any query about a stay.
Company GSTIN for business guests
A company paying for an employee's stay will want its GSTIN and name on the invoice. Place of supply is the location of the guest house, so CGST and SGST apply.
Advance and cancellation terms
Guest houses often take a deposit at booking. Recording the advance and the cancellation terms on the bill explains any retained amount if plans change.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
The 56th GST Council reduced GST on hotel accommodation where the value of supply of a unit is up to Rs 7,500 per day from 12% with credit to 5% without credit, effective 22 September 2025. The Council's FAQs confirm that such rooms do not attract 18%. For a guest house, this means every room priced at or below Rs 7,500 per night carries 5%, regardless of whether it has air conditioning, and the guest house cannot claim credit on furniture, linen or renovation used for these rooms.
Online travel platform bookings
Under section 9(5), accommodation services supplied through an e-commerce operator are taxed in the hands of the operator, except where the person supplying the service is liable to register under section 22(1). So an unregistered small guest house listed on a booking platform does not pay GST itself on those bookings; the platform does. Once the guest house crosses the threshold and is liable to register, it pays tax on platform bookings itself. Know which side of the line you are on before preparing bills.
Meals inside a guest house
Food served to guests in a guest house is a restaurant-type service. Because a typical guest house does not have rooms priced above Rs 7,500, it is not specified premises, and meals carry 5% without credit. If meals are included in the room price, the package is likely a composite supply with accommodation as the principal supply. Pricing meals separately on the bill keeps the treatment clear and avoids disputes.
Registration threshold
Accommodation is a service, so the threshold for registration is generally Rs 20 lakh of aggregate turnover. A small family guest house below this limit, booking only directly, may not need GST registration at all. Remember that aggregate turnover includes all supplies under the same PAN in the state, such as a cafe or tour desk, not just room income.
Long stays and residential use
When a guest stays for months as a residential tenant, the supply may move toward residential renting, which has a different treatment from short-stay hotel accommodation. Agreements and invoices should reflect the true nature of the stay. A guest house that converts rooms to long-term rentals should take advice before changing its billing, because the classification affects both rate and credit.
Common billing mistakes
✕Charging 12% on rooms after 22 September 2025, when the rate for rooms up to Rs 7,500 became 5%.
✕Charging GST on platform bookings when the platform is liable under section 9(5) because the guest house is not liable to register.
✕Claiming input tax credit on room renovation while charging 5% without credit.
✕Bundling meals into the room price without any breakup, making the tax treatment unclear in an audit.
✕Forgetting to include income from an attached cafe when checking the registration threshold.
Guest House GST invoice: FAQ
What GST rate applies to a guest house room of Rs 2,000?
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5% without input tax credit, since the value of supply is below Rs 7,500 per unit per day.
Does a small guest house need GST registration?
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Not until aggregate turnover crosses the threshold, generally Rs 20 lakh. Platform bookings by an unregistered guest house may be taxed by the platform under section 9(5).
Can a guest house claim credit on furniture?
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Not for rooms taxed at 5%, since that rate is conditional on not taking credit on inputs used to supply the accommodation.
Should meals be billed separately?
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It is better to show meals as separate lines so the accommodation and food parts are clear. Meals in a guest house that is not specified premises carry 5% without credit.
Is GST payable on a cancellation charge?
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A retained amount on cancellation can be consideration for a supply. Show it clearly on a bill and take advice on its rate.