Food and hospitality
A homestay or bed-and-breakfast supplies short-stay accommodation under SAC 996311, taxed at 5% without credit where the value per room per day is up to Rs 7,500. Many homestays are unregistered and rely on booking platforms, which pay GST on their behalf under section 9(5) when the host is not liable to register. A registered homestay's bill should show rooms, nights, tariff per night, meals, platform or direct booking, and the host's state tourism registration where applicable.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Homestay room with attached bath, 2 nights | 996311 | 2 NIGHT | 3,200.00 | 6,400.00 | 5% |
| Extra mattress | 996311 | 2 NIGHT | 500.00 | 1,000.00 | 5% |
| Home-cooked dinner | 996332 | 4 MEAL | 350.00 | 1,400.00 | 5% |
| Breakfast | 996332 | 4 MEAL | 200.00 | 800.00 | 5% |
| Taxable value | ₹9,600.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹480.00 | ||||
| Invoice total | ₹10,080.00 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: Billing for Service Businesses: Models, GST and Best Practice · GST Rates and Slabs in India: The Current Structure Explained · Tax Invoice vs Bill of Supply: Which One Should You Issue?
Since 22 September 2025, accommodation up to Rs 7,500 per unit per day carries 5% without credit. Homestays nearly always fall in this band. The rate is conditional on not taking input tax credit on goods and services used for the accommodation, so the host cannot claim GST on beds, linen or renovation against room income.
Section 9(5) makes an e-commerce operator liable for GST on accommodation services supplied through it, except where the supplier is liable for registration under section 22(1). In practice, a homestay below the registration threshold that takes bookings only through platforms will see the platform pay GST on those bookings. The host must not add GST on top. Once the host's turnover crosses the threshold and registration is required, the host pays tax on platform bookings itself.
Direct bookings by phone or social media are not covered by section 9(5). An unregistered host below the threshold charges no GST on them. A registered host charges 5% and issues a tax invoice. Mixing direct and platform bookings means the host must check, for each booking, who is liable.
Meals cooked by the host and served to guests are a food service. Because a homestay is not specified premises unless it charged above Rs 7,500 per unit in the previous year, meals carry 5% without credit. Guided walks, cooking classes and other experiences are different services and may carry other rates, so bill them separately rather than folding them into the room.
The registration threshold looks at aggregate turnover under the same PAN in the state, including room income from platforms, direct bookings, meals and experiences. A host with two homestays in the same state under one PAN must add both. Track total turnover monthly so you register in time.
Guests who stay for a month or more may ask for a monthly rate. If the arrangement is still short-stay accommodation with housekeeping and services, it remains hotel-type accommodation at 5% on the per-day equivalent. If it becomes renting of a residential dwelling for use as a residence, a different treatment may apply. Write the nature of the stay in the booking terms and on the bill, and take advice before switching treatment.
Only once aggregate turnover crosses the services threshold, generally Rs 20 lakh, though platforms may ask for a GSTIN depending on their onboarding.
The platform, under section 9(5), when the host is not liable to register. Registered hosts pay tax on platform bookings themselves.
5% without input tax credit.
Meals are a food service at 5% without credit; billing them separately keeps the treatment clear.
Yes, a plain bill or receipt without any GST shown.
Many states have their own schemes. It is separate from GST and FSSAI requirements.
Yes. Since the slab test is per unit per day, a monthly bill should show the per-night equivalent so the 5% rate can be justified if questioned.
If the host serves meals to paying guests, the food business is covered by FSSAI rules and basic registration is usually needed. Print the number on bills that include meals.
Sources: GST Council — Press release, 56th GST Council recommendations (Sept 2025) · GST Council — FAQs on decisions of the 56th GST Council · CBIC — Central Tax (Rate) notifications incl. 15/2025-CT(Rate)
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