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SAC Code for Restaurant, and services in Hotels

satyaban sahoo (Business Owner) (4 Points)

25 April 2025

Suppose Hotel which provide both room services for customers stayed at Hotel, as well as restaurant services to non-staying customers. I want to know about SAC code applicable for both and also applicable rate. I am confused whether to apply 996331 or 996332.

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7418 Points)
Replied 25 April 2025

SAC Code for Hotel Services - *Room Services*: The SAC code for accommodation services, including room services for customers staying at the hotel, is *996331*. The applicable GST rate for this service is typically *12%* (6% CGST + 6% SGST). -

*Restaurant Services*: For restaurant services provided to non-staying customers, the SAC code is *996332* or *996333*, depending on whether the service is with or without alcoholic beverages.

The applicable GST rate for restaurant services without alcoholic beverages is typically *5%* (2.5% CGST + 2.5% SGST) or *12%* (6% CGST + 6% SGST) for services with alcoholic beverages. Determining the Correct SAC Code - *Primary Service*: Determine the primary service being provided. If the primary service is accommodation (room stay), use SAC code *996331*. If the primary service is food and beverage (restaurant service), use SAC code *996332* or *996333*. - *Bundled Services*: If you're providing bundled services (e.g., room stay with food), determine the principal supply. If the principal supply is accommodation, charge GST at 12%.

SAC Code for Hotel Services

- *Room Services*: The SAC code for accommodation services, including room services for customers staying at the hotel, is *996331*. The applicable GST rate for this service is typically *12%* (6% CGST + 6% SGST).

- *Restaurant Services*: For restaurant services provided to non-staying customers, the SAC code is *996332* or *996333*, depending on whether the service is with or without alcoholic beverages. The applicable GST rate for restaurant services without alcoholic beverages is typically *5%* (2.5% CGST + 2.5% SGST) or *12%* (6% CGST + 6% SGST) for services with alcoholic beverages.

Determining the Correct SAC Code

- *Primary Service*: Determine the primary service being provided. If the primary service is accommodation (room stay), use SAC code *996331*. If the primary service is food and beverage (restaurant service), use SAC code *996332* or *996333*.

- *Bundled Services*: If you're providing bundled services (e.g., room stay with food), determine the principal supply. If the principal supply is accommodation, charge GST at 12%. If the principal supply is food and beverage, charge GST at 5% or 12%, depending on whether alcoholic beverages are serv

- *Maintain Accurate Records*: Ensure you maintain accurate records of services provided, including the SAC code and GST rate charged, to avoid any potential issues with tax authorities.If the principal supply is food and beverage, charge GST at 5% or 12%, depending on whether alcoholic beverages are served. Recommendations -

*Maintain Accurate Records*: Ensure you maintain accurate records of services provided, including the SAC code and GST rate charged, to avoid any potential issues with tax authorities.