The Compliance Checklist Every Homestay Owner in India Needs

Most problems owners face with short stays are not about money — they are about paperwork: a society that objects, a guest whose identity was never recorded, or a tax notice nobody expected. Rules differ by state and city and they change, so treat this as a checklist to work through with your society and your chartered accountant, not as legal advice.

1. Record every guest’s identity

Keep a copy of a government photo ID for every adult who stays, along with their contact details and dates of stay. Many local police stations expect accommodation providers to share guest details on request.

• Indian guests: Aadhaar, passport, driving licence or voter ID.
• Foreign guests: passport and visa, and submit Form C to the Bureau of Immigration (through the online FRRO system) within 24 hours of their arrival.

2. Check registration and permissions

• State homestay or bed-and-breakfast schemes: several states, including Goa, Himachal Pradesh, Uttarakhand and Kerala, run registration schemes for homes that host paying guests.
• Society or RWA permission: get your society’s consent in writing. It prevents most disputes before they start.
• Building use: if your building plan is sanctioned for residential use, check whether your municipality treats short stays differently.

3. Understand GST

Accommodation services become liable for GST once your turnover crosses the registration threshold (₹20 lakh a year for services in most states). After the 2025 GST revision, room tariffs up to ₹7,500 a night attract 5% GST (without input tax credit), and tariffs above ₹7,500 attract 18%. When you book through a platform, check who is collecting and paying the tax.

4. Make the home safe

• A fire extinguisher and smoke detector on every floor, and a clear exit route.
• A basic first-aid kit and emergency numbers displayed inside the home.
• Safe electrical wiring, working geysers with earthing, and railings on balconies and terraces.
• Home insurance that covers paying guests.

5. Put the rules in writing

Clear house rules — number of guests, visitors, quiet hours, smoking, pets — signed by the guest before arrival avoid most arguments. On Avenaa, the main guest and a co-guest verify their ID in online check-in and the main guest signs the house rules before anyone reaches the home.

What Avenaa handles for you

When Avenaa manages your home, guest ID verification, digital house-rule agreements, guest records and safety checks are part of the service, and our team guides you through any registration your state requires.