GST for PG & Hostel Owners in India — The Complete 2026 Guide
GST rules for PG and hostel owners have shifted several times. This guide summarises the 2026 position — when you must register, what rate applies, whether ITC is available, and how to invoice tenants cleanly.
Do PG owners have to register for GST?
You must register for GST if your aggregate annual turnover across all revenue streams crosses ₹20 lakh (₹10 lakh in special-category states).
Turnover includes rent + mess fees + laundry + amenity charges — not just the room fee.
What GST rate applies to PG accommodation?
Long-stay residential PG accommodation (>90 days) below the daily equivalent threshold is generally exempt.
Short-stay hostels and premium PGs charging above the daily threshold attract 12% GST (subject to CBIC notifications — always confirm with your CA).
Input Tax Credit (ITC)
You can claim ITC on GST paid on furniture, ACs, mattresses, kitchen equipment, and platform SaaS subscriptions (like SatraM). Track invoices carefully — GSTR-2B reconciliation is now automated.
Reverse Charge Mechanism (RCM)
Renting from an unregistered landlord for the hostel building can trigger RCM. Some CBIC notifications alter this — check current rules or ask your CA.
GST-compliant invoicing
Every invoice must show: your GSTIN, tenant name, HSN/SAC code, taxable value, CGST/SGST/IGST breakup, and place of supply. SatraM auto-generates all of this.
GSTR filing cadence
Monthly GSTR-1 (outward supplies) and GSTR-3B (summary + payment). Quarterly filing under QRMP if turnover < ₹5 crore. Auto-populated from your invoice data.