The two slabs
| Room price per unit per night | GST | Input tax credit |
|---|---|---|
| Up to ₹7,500 | 5% | Not available |
| Above ₹7,500 | 18% | Available |
The 5% slab took effect on 22 September 2025. Before that, rooms up to ₹7,500 were taxed at 12% with input tax credit. The test uses the price actually charged, not a published or "declared" tariff (AxisRooms).
Worked examples
- A room at ₹4,000 a night for 3 nights: ₹12,000 + 5% GST (₹600) = ₹12,600.
- A villa at ₹20,000 a night for 2 nights: ₹40,000 + 18% GST (₹7,200) = ₹47,200.
- Two rooms, one at ₹6,000 and one at ₹9,000, for 1 night: ₹300 GST on the first and ₹1,620 on the second.
Check your own numbers with the room GST calculator.
Who pays GST on OTA bookings
For accommodation sold through e-commerce operators such as Airbnb, Booking.com or MakeMyTrip, the law lets the platform pay the GST for small unregistered hosts (section 9(5) of the CGST Act). Once you are GST-registered, you charge and pay it yourself (CalcGuru). Booking sites also charge GST on their commission.
Do you need to register?
GST registration depends on your turnover, the state you are in and how you sell. Many small homestays fall below the threshold; others register to work with corporate guests and travel agents. Ask a chartered accountant, because the rules for accommodation sold through platforms have their own conditions.
Food and extras
Meals, treatments and activities are taxed under their own rules, which can differ from the room rate. List them as separate lines on the bill and ask your accountant which rate applies.
How InnRow handles it
Once you enter your GSTIN, InnRow applies 5% or 18% per room per night based on the price charged, numbers invoices and issues credit notes. Without a GSTIN it makes bills without GST. See GST invoices.
This guide is general information, not tax advice.
Questions people ask
What is the GST rate for homestays in 2026?
5% without input tax credit for rooms up to ₹7,500 per night, and 18% with input tax credit above ₹7,500, from 22 September 2025.
Is GST applicable on a homestay below ₹1,000 a night?
Since the 2025 reform, rooms up to ₹7,500 carry 5% GST when the supplier is registered or when a platform pays it under section 9(5). Ask your accountant whether you need to register.
What is the SAC code for homestay accommodation?
Accommodation services are generally classified under SAC 9963. Confirm the exact code for your invoices with your accountant.
Does Booking.com charge GST on commission?
Yes. Booking sites in India add GST to the commission they charge hosts.