9963 Accommodation, Food and beverage services
Heading 9963 of the SAC classification covers accommodation, Food and beverage services. The schedule writes 6 entries against it, ranging from 5% to 18%, with 18% as the residual rate when no specific entry matches.
- Residual rate18%
- Service codes14
- Schedule entries6
Hotels, guest houses, hostels and camp sites, and every kind of food and beverage service from restaurants and canteens to outdoor catering and food served on trains and flights. Rates here turn on two thresholds: the room tariff and whether the supplier operates from specified premises.
Is this the right heading for your service?Confirm the code and the rate with an advisor, freeGST rate for SAC 9963
The rate schedule is written against the heading, so these entries govern every service code under 9963. The entry that applies is the one whose description actually matches the supply.
- Nil
- 1.5%
- 5% applies here
- 7.5%
- 12%
- 18% applies here
- 40%
| Entry | What it covers | GST rate | CGST + SGST | Input tax credit |
|---|---|---|---|---|
| (i) | Hotel accommodation where the value of supply of a unit of accommodation is up to Rs. 7,500 per unit per day, or equivalent. Input tax credit on goods and services used in supplying the service cannot be taken. | 5% | 2.5% + 2.5% | No input tax credit |
| (ii) | Restaurant service supplied at premises other than specified premises. Specified premises are, broadly, premises from which hotel accommodation was supplied above Rs. 7,500 per unit per day in the preceding financial year, or premises for which the supplier has filed a declaration opting in. | 5% | 2.5% + 2.5% | No input tax credit |
| (iii) | Supply of food, drink or other article for human consumption by Indian Railways, the IRCTC or their licensees, on trains or at platforms. | 5% | 2.5% + 2.5% | No input tax credit |
| (iv) | Outdoor catering supplied at premises other than specified premises, by a person other than one supplying hotel accommodation above Rs. 7,500 per unit per day. | 5% | 2.5% + 2.5% | No input tax credit |
| (v) | A composite supply of outdoor catering together with renting of the premises, at premises other than specified premises. | 5% | 2.5% + 2.5% | No input tax credit |
| (vi) Residual | Accommodation, food and beverage services other than the above, including hotel accommodation above Rs. 7,500 per unit per day and restaurant service supplied at specified premises. | 18% | 9% + 9% | Credit available |
More than one entry can apply here. The one that governs is the entry whose description actually matches the supply; where none does, the residual entry sets the rate.
Rates shown here are as published in GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) and are reproduced for reference. The GST Council revises rates through notifications, including the rate rationalisation effective 22.09.2025 that withdrew the 12% and 28% slabs for most services and introduced a 40% rate for a short list of them. Always verify the current rate and the conditions attached to it on the CBIC GST rates page or the CBIC tax information portal before invoicing or filing. Rates exclude any applicable cess. IncorpX provides assistance for GST registration and return filing if you need help.
Exempt supplies under 9963
Where an exemption applies it beats the rate schedule, so check these before reading a rate off the table above.
Some supplies under this heading carry no GST at all. An exemption removes the charge rather than setting a rate, so it overrides the schedule where it applies.
- Services by a hotel, inn, guest house, club or campsite for residential or lodging purposes where the declared tariff of a unit of accommodation is below the notified threshold has been withdrawn; low-tariff accommodation is now taxed at 5% rather than exempt. Withdrawn with effect from 18.07.2022
Source: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate). Exemptions carry conditions and definitions of their own, so read the notification entry before relying on one.
14 service codes under 9963
Grouped the way the classification groups them. Open the group that matches your kind of service, then pick the code whose official description covers what you supply.
9963 1Accommodation services3
9963 2Other accommodation services3
9963 3Food, edible preparations, alchoholic & non-alchocholic beverages serving services8
Where SAC 9963 is used
The same code, at different digit lengths, runs through your invoices, returns and registration.
Rule 46 requires the SAC code on the invoice for every service line, next to its description and value.
Get assistanceThe HSN/SAC summary table of GSTR-1 reports each code with its taxable value and tax: 4 digits up to Rs. 5 crore aggregate turnover, 6 digits above it.
Get assistanceThe services you supply are described with SAC codes when the registration application is prepared for the GST portal.
Get assistanceThe e-invoice schema validates the SAC field before the IRP returns an IRN, so a wrong code fails at generation rather than at assessment.
Get assistance- Classification: Scheme of Classification of Services, Annexure to Notification 11/2017-Central Tax (Rate), Central Board of Indirect Taxes and Customs (cbic-gst.gov.in).
- Rates: GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) (CBIC rate finder).
- Exemptions: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate).
- Reverse charge: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended.
- Current position: GST Council notifications published on the CBIC tax information portal.
This directory reproduces government classifications and rate entries for reference. The official gazette and CBIC notifications remain the authoritative sources. IncorpX provides assistance for registrations and filings that use these codes and does not issue the classification or the rates itself.
Get the SAC code and GST rate right the first time
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Guides and resources
The invoicing and return rules that decide how this code is actually used.
SAC 9963 questions
What does SAC heading 9963 cover?
Heading 9963 of the SAC classification covers accommodation, Food and beverage services. The schedule writes 6 entries against it, ranging from 5% to 18%, with 18% as the residual rate when no specific entry matches.
What is the GST rate for heading 9963?
It depends on which entry of the schedule matches the supply. Heading 9963 carries 6 entries at rates from 5% to 18%. Where no entry specifically matches, the residual entry applies and the rate is 18%. Several concessional entries are conditional on not taking input tax credit, so read the credit column before choosing.
Are any services under heading 9963 exempt from GST?
Yes. 1 exempt entry touches this heading, including services by a hotel, inn, guest house, club or campsite for residential or lodging purposes where the declared tariff of a unit of accommodation is below the notified threshold has been. An exemption removes the charge rather than setting a rate, so where it applies it overrides the rate schedule.
Does reverse charge apply to services under heading 9963?
No reverse charge entry is notified against this heading, so the supplier charges GST on the invoice in the normal way. Import of services is a separate rule that can apply to any heading.
How many digits of SAC 9963 do I report?
Report all 4 digits of 9963 on invoices and in the GSTR-1 summary if your aggregate turnover is up to Rs. 5 crore, and the full 6-digit code above that. Pick the 6-digit code from the list on this page.
Nebin Binoy 
