If you run a hotel, restaurant, hostel, catering business, PG, or food service, GST classification is a basic but very important requirement.
Under GST, such services are classified using SAC Code 9963, which covers accommodation, food, and beverage services in India.
Understanding SAC Code 9963 helps you:
- Issue correct GST invoices
- Apply the correct GST rate
- Avoid notices, penalties, and confusion during audits
In this guide, we explain all SAC codes under 9963 with clear explanations.
What is SAC Code 9963 under GST?
SAC (Services Accounting Code) is used to classify services under GST, just like HSN is used for goods.
SAC Code 9963 is specifically meant for:
- Accommodation services
- Restaurant and food services
- Catering and contract food services
It applies to both small businesses and large establishments operating in India.
Why SAC Code 9963 is Important for GST Compliance
Using the correct SAC code under 9963 helps businesses:
- Charge the correct GST rate
- Avoid wrong classification penalties
- Maintain proper GST invoices
- Ensure smooth GST return filing (GSTR-1, GSTR-3B)
Even if GST rate changes, correct SAC classification remains mandatory.
Common Mistakes Businesses Make
- Using one SAC code for all services
- Mixing room rent and food SAC codes incorrectly
- Choosing SAC without understanding service nature
Correct classification avoids GST notices and reconciliation issues.
SAC Code 9963 – Reference Table applicable to Accommodation, Food and Beverage Services under GST (India)
| SAC code | SAC Description |
|---|---|
| 9963 | Accommodation, food and beverage services |
| 996311 | Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like |
| 996312 | Camp site services |
| 996313 | Recreational and vacation camp services |
| 996321 | Room or unit accommodation services for students in student residences |
| 996322 | Room or unit accommodation services provided by Hostels, Camps, Paying Guest and the like |
| 996329 | Other room or unit accommodation services nowhere else classified |
| 996331 | Services provided by restaurants, cafes and similar eating facilities including takeaway services, room services and door delivery of food |
| 996332 | Services provided by Hotels, Inn, Guest House, Club and the like including room services, takeaway services and door delivery of food |
| 996333 | Services provided in canteen and other similar establishments |
| 996334 | Catering Services in exhibition halls, events, marriage halls and other outdoor/indoor functions |
| 996335 | Catering services in trains, flights and the like |
| 996336 | Preparation or supply services of food, edible preparations, alcoholic and non-alcoholic beverages to airlines and other transportation operators |
| 996337 | Other contract food services |
| 996339 | Other food, edible preparations, alcoholic and non-alcoholic beverages serving services nowhere else classified |
Examples
- A hotel charging ₹3,000 per night for a room will use SAC 996311 on its GST invoice.
- A campsite charging ₹1,200 per night for tents to tourists uses SAC 996312.
- A summer vacation camp charging ₹15,000 per child for stay and activities uses SAC 996313.
- A private student hostel charging ₹8,000 per month per student uses SAC 996321.
- A PG accommodation charging ₹10,000 per month uses SAC 996322.
- Unique or mixed-use accommodation models may fall under SAC 996329.
- A restaurant charging ₹500 for food plus GST uses SAC 996331.
- Hotel food billed separately from room rent uses SAC 996332.
- A contractor running a factory canteen uses SAC 996333.
- A caterer charging ₹2,00,000 for wedding catering uses SAC 996334.
- A company supplying meals in trains uses SAC 996335.
- An airline food supplier uses SAC 996336.
- A caterer providing daily meals to an IT office under contract uses SAC 996337.
- Specialized or hybrid food service models may use SAC 996339.