Taxes Policy
RUDRALEELA PRIVATE LIMITED — Operating ROMANCHA Version: 1.0 | Effective Date: April 25, 2026This page explains how taxes work on Romancha in plain language. We have tried to make this as simple as possible, but tax law is complex. Please talk to your CA for advice specific to your situation. Romancha does not provide tax advice.
GST on Accommodation
Goods and Services Tax (GST) applies to accommodation services in India. The rate depends on the per-night tariff charged to the guest.
SAC Code: 996311 (Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places for short duration)GST Rate Table
Effective 22 September 2025 per Notification 15/2025-C.T.(R):| Tariff per night | GST Rate | ITC | Example |
|---|---|---|---|
| Up to ₹7,500 (including ≤ ₹1,000) | 5% | No | ₹3,000/night → ₹150 GST |
| Above ₹7,500 | 18% | Yes | ₹10,000/night → ₹1,800 GST |
Important: The ₹999/night and below exemption (0%) was abolished from 18 July 2022 vide Notification 04/2022-C.T.(R). All tariffs up to ₹7,500 — including budget stays — are now taxed at 5%. Any website or blog still showing a 0%/5%/18% three-tier structure is out of date.
GST is calculated on the Listing Price (nightly rate × number of nights), after discounts. No cleaning fee is added to the GST base, and Romancha charges zero platform commission.
For Guests
As a guest, the GST shown to you during checkout is the only government tax on your booking. Romancha does not charge any service fee, booking fee, or platform fee. The only addition to the host's listed price is GST.
For Hosts — Are You Registered Under GST?
If You Are NOT GST-Registered
GST registration is required when your annual aggregate turnover from all sources exceeds:
- ₹20,00,000 (Twenty Lakhs) for most states;
- ₹10,00,000 (Ten Lakhs) for special category states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.
If You ARE GST-Registered
You must provide your valid GSTIN to Romancha through your host dashboard.
- Romancha passes the GST amount to you as part of your payout.
- You are responsible for remitting GST to the tax authority and filing your returns.
- Romancha deducts Tax Collected at Source (TCS) at 1% total (0.5% CGST + 0.5% SGST) under Section 52 of the CGST Act and deposits it against your GSTIN as an advance credit.
- You claim this TCS credit in your GST portal (electronic cash ledger) when filing your returns.
Income Tax TDS (Section 194-O)
As an E-Commerce Operator (ECO) under the Income Tax Act, Romancha is required to deduct TDS on payouts to hosts.
TDS Rate Table
| Your status | TDS Rate | Notes |
|---|---|---|
| Valid PAN provided to Romancha | 0.1% | Finance Act 2024, effective October 1, 2024 |
| PAN NOT provided (Section 206AA) | 5% | Higher rate applies |
| Payouts below ₹5,00,000/year | Nil | TDS only applies above this threshold |
How to avoid 5% TDS
Simply provide your PAN in your host profile. This takes under one minute and brings your TDS rate from 5% to 0.1%.
What Romancha Provides to Hosts
Through your host dashboard, you can download:
- Monthly payout statements — itemized to show: Listing Price received, TCS deducted (if applicable), TDS deducted (if applicable), and your Net Payout.
- Form 16A — quarterly TDS certificates issued by Romancha, for claiming TDS credit in your ITR.
- GSTR-8 reconciliation data — for GST-registered hosts, to cross-check against your own GSTR-1 filings.
Complete Payout Calculation — Example
For a GST-registered host, earning ₹10,000 booking (2 nights × ₹5,000 ADR), PAN provided:
| Item | Amount | Notes |
|---|---|---|
| Listing Price × nights | ₹10,000 | What the guest pays (before GST) |
| GST at 5% (ADR ₹5,000) | ₹500 | Collected from guest |
| Guest Total | ₹10,500 | |
| TCS at 1% (GST-registered hosts) | −₹100 | Advance GST credit to your portal |
| TDS at 0.1% (s.194-O, PAN provided) | −₹10 | Advance income tax credit via Form 16A |
| Platform commission | ₹0 | Zero |
| Host Net Payout | ₹9,890 | |
| +Tax credits claimable | +₹110 | TCS (₹100) + TDS (₹10) |
| Effective earnings | ₹10,000 | After claiming credits at ITR/GST filing |
For unregistered hosts (most small homestays): Zero TCS, Zero TDS (below ₹5L/year), full ₹10,000 payout.
Summary Table
| Your type | GST handling | TCS | TDS (if >₹5L/yr payout) | Net effect |
|---|---|---|---|---|
| Unregistered host | Romancha handles | None | None | Full payout |
| Registered host, PAN provided | Pass-through | −1% (claimable) | −0.1% (Form 16A) | Credits claimed at filing |
| Registered host, no PAN | Pass-through | −1% (claimable) | −5% (recover at ITR) | Provide PAN to avoid this |
This document is for information only and does not constitute tax advice. Consult a qualified Chartered Accountant for advice specific to your circumstances. Last Updated: April 25, 2026 | Version 1.0