Occupancy tax collection and remittance by HomestayBuddy Platform in India

Guests who book HomestayBuddy Platform listings that are located in the Country of India will pay the following taxes as part of their reservation:

India Goods and Services Tax: 12 – 18% of the accommodation charge including any cleaning fee. Tax rates vary based on the average nightly rate of the reservation. HomestayBuddy Platform will remit the entire portion of the GST collected from the guest directly to the tax authorities for hosts whose annual turnover is at or below the GST registration thresholds of INR 20 lakhs or INR 10 lakhs for Hosts whose listings are located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. Hosts whose annual turnover is above the INR 20/10 lakhs thresholds mentioned above are required to remit the entire amount of the GST collected from the guest to the tax authorities. For detailed information, please check below Guidance on Goods and Services Tax (GST) for India Hosts or  India’s government website.

Find out more about how occupancy tax collection and remittance by HomestayBuddy Platform works.

Note: Hosts located in these areas are responsible for assessing all other tax obligations, including state and city jurisdictions. Hosts with listings in these areas should also review their agreement with HomestayBuddy Platform under the Terms of Service and familiarize themselves with the Occupancy Tax provisions which allow us to collect and remit taxes on their behalf and explains how the process works. Under those provisions, hosts instruct and authorize HomestayBuddy Platform to collect and remit Occupancy Taxes on their behalf in jurisdictions where HomestayBuddy Platform decides to facilitate such collection. If a host believes applicable laws exempt the host from collecting a tax that HomestayBuddy Platform collects and remits on the host’s behalf, the host has agreed that, by accepting the reservation, the host is waiving that exemption. If a host does not want to waive an exemption the host believes exists, the host should not accept the reservation.

All prices are inclusive of Goods and Services Tax (GST), other indirect taxes, occupancy taxes, tourist or other visitor taxes, duties, and cesses (“Taxes”) as applicable, unless stated otherwise, and you will not be required to pay any additional Taxes at the time of checkout from the Accommodation. At the time of checkout from the Accommodation, the Host shall issue a tax invoice providing the breakdown between the base booking fee and all applicable taxes, the aggregate of which shall at all times be not more than the all inclusive price paid by you at the time of booking the Listing. Please note that HomestayBuddy Platform shall not be issuing any invoice to you in respect of the booking. It may at its sole discretion, issue a receipt to you acknowledging payment of the amounts received.

 

Rules For Hosts

Guidance on Goods and Services Tax (GST) for India Hosts

This FAQ is intended solely for information purposes and no HomestayBuddy Platform Host or other third party may rely upon it as tax or legal advice or use it for any other purpose. As such, HomestayBuddy Platform assumes no responsibility whatsoever to HomestayBuddy Platform Hosts or other third parties as a result of the use of information contained herein.

Readers are encouraged to consult with professional advisors for advice concerning specific matters before making any decision or taking a position on any tax return. HomestayBuddy Platform disclaims any responsibility for positions taken by taxpayers in their individual cases or for any misunderstanding on the part of readers.

General

What is the system of collection and payment of GST by HomestayBuddy Platform Hosts in India?

HomestayBuddy Platform Hosts who expect their annual commercial turnover from sale of goods and services to be at or below INR 20 lakhs (at or below INR 10 lakhs in special category states identified under Article 279A(4)(g) of the Constitution of India) are currently exempt from registering for Goods and Services Tax (GST) purposes. For these Hosts, HomestayBuddy Platform will remit the entire GST collected from the guests directly to the tax authorities.

Hosts who expect their annual commercial turnover from sale of goods and services to be over the GST registration threshold of INR 20 lakhs (or INR 10 lakhs in special category states identified under Article 279A (4)(g) of the Constitution of India) are liable to register for GST and obtain a GST number (GSTIN). For these Hosts, it is the Hosts’ responsibility to remit the GST on reservations (net of any tax collected at source (TCS) deducted) to the tax authorities and it is HomestayBuddy Platform’s responsibility to deposit TCS against the GSTIN(s) provided by Hosts.

What are the current tax rates?

HomestayBuddy Platform collects GST from guests on behalf of HomestayBuddy Platform Hosts who reside in India and have listings in India at the following prescribed slab rates:

Accommodation Charge per Unit, per Night: Tax Rate

• Up to 7,500 INR: 12%
• 7,501 INR and above: 18%

The accommodation charge per unit per night is calculated as the reservation gross booking amount divided by the number of nights on the reservation. The tax rates are set by the Government of India and cannot be changed.

Will the HomestayBuddy Platform service fees be calculated on total listing price and the GST?

No, the HomestayBuddy Platform service fees would be calculated from the booking subtotal (before fees and taxes).

For Hosts

I am a GST-registered Host. How can I receive the GST collected by HomestayBuddy Platform from guests so that I can pay this to the tax authorities?

Add your GSTIN(s) here so that we know you are a GST-registered host. For bookings accepted after you add your GSTIN, we will send the GST to you for your remittance to the tax authorities.

If you did not add your GSTIN to your account, HomestayBuddy Platform is unable to payout GST retrospectively for reservation payouts that have already occurred.

I am a GST-registered Host. I have been receiving GST payouts as I have added GST to my listings using the additional taxes feature. Do I need to submit my GSTIN here?

Yes, please add your GSTIN(s) here to ensure you continue to receive GST payouts. Please also remove all GST settings added through the additional taxes feature to avoid double-charging of taxes to guests.

I have added my GSTIN here. When can I expect to receive my GST payouts?

We’ll send your GST payout about 24 hours after a guest checks into your place. Your bank and payout method will determine how long it will take for your funds to arrive in your account. Find out more about when you’ll get your payout.

I want to update/amend a GSTIN submitted previously. How can I do this?

Go to the GST Registration Page and update your GSTIN by replacing an existing GSTIN in the field. HomestayBuddy Platform will deposit TCS against your updated GSTIN on a prospective basis and is unable to amend past TCS returns.

I need to register for GST. How can I do this?

Submit your registration on the Goods and Services Tax Network here. Please consult a professional on your GST obligations based on your circumstances.

Add your GSTIN(s) here as soon as you obtain the GSTIN(s), to ensure that you can receive GST payouts on bookings to comply with your GST obligations.

I am no longer required to be registered for GST and have de-registered. How can I remove my GSTIN from my account and stop GST collection on my listings?

Hosts should review all listings and associated GSTINs on the GST Registration Page and remove any GSTIN that are no longer valid.

Hosts can update their GSTIN by replacing an existing GSTIN in the field, or delete their GSTIN entirely from the field.

For listings without an associated GSTIN, HomestayBuddy Platform will collect any applicable GST from the guests and remit the GST to the tax authorities.

I am a GST-registered Host. Why do some of my listings collect GST while others do not?

GST is charged when 1) the Host has an India country of residence (COR) and 2) the listing address is located in India. Please ensure you fill in all listing addresses accurately. If this issue persists, please contact HomestayBuddy Platform.

Since HomestayBuddy Platform will be remitting GST on behalf of Hosts who have not provided their GSTIN, what kind of income should the Host declare on his/her returns?

If the Host does not have a GSTIN because they have not crossed the GST registration threshold, they should not be required to file any GST returns, and thus the question of disclosure on the GST returns should not arise as well.

I am a GST-unregistered Host. Where can I find proof of GST remitted by HomestayBuddy Platform to the tax authorities?

It is HomestayBuddy Platform’s responsibility to remit the entire GST collected from the guests directly to the tax authorities in respect of reservations with GST-unregistered Hosts. For Hosts that did not provide GSTIN(s) here, HomestayBuddy Platform treats such Hosts as GST-unregistered and remits the entire GST collected from guests directly to the tax authorities in one lump sum on a monthly basis.

If you are not liable to register for GST, you should not be required to file any GST returns or remit any GST to the tax authorities. Thus, there should not be a need to ask for such proof.

How is the GST threshold determined? If a Host stays in a special category (SC) state but has a listing in a non-SC state, would the threshold be determined by their state of residence or state of the listing?

Generally, the threshold is determined by the state that the listing is in, and not by the state the Host resides in. Please check with your tax consultants on the GST implications of your specific circumstances.

How would GST apply to an entire home consisting of multiple rooms listed on HomestayBuddy Platform vs. individual rooms of the same home listed separately on HomestayBuddy Platform?

The term used in the GST regulation is ‘per unit per day’. Thus, if the Host reflects an entire home with multiple rooms as a single unit, the home should be treated as a single unit for computing the GST rate (and not based on the number of rooms).

If the Host reflects each room as a separate unit with individual room rates, each room will be treated as a separate unit. For example, if a guest books 4 rooms in the same home at the per room rate, then the GST implications would be calculated at a per room rate.

For guests

Where can I find the GST amount collected by HomestayBuddy Platform on my receipt?

The occupancy tax on the receipt is the collected GST amount.

I need a GST invoice for my booking. Where can I find this?

Contact us.