Hexuvium

Registering a homestay or B&B in India, state by state

There is no single national licence for renting your home to travellers in India: each state writes its own rules. This guide shows owners what applies where, and what to check before the first booking.

Mumbai
Photo : Mumbai — Rutiknatekar, CC BY-SA 4.0, Wikimedia Commons

India has no one law for short-term rentals. Tourism is largely a state matter, so whether you may host paying guests in a flat in Mumbai, a villa in Assagao or a family house above Manali is decided in Panaji, Mumbai or Shimla rather than in New Delhi. We have managed short-term rentals for owners since 2015, and the first job on any new property is to identify which regime applies to it. This page is the map; each state page gives the detail, with the official texts listed as sources.

Three questions every state asks

Almost every scheme turns on the same points, answered differently from one state to the next:

The states at a glance

NIDHI: a national database, not a licence

The Ministry of Tourism runs NIDHI, the National Integrated Database of Hospitality Industry. The Ministry describes its role as gathering data on registered and classified units, and its Incredible India homestay classification is voluntary. A NIDHI entry does not replace the registration your state requires; see it as an additional layer that can help with visibility and some central schemes.

Foreign guests: Form-III, formerly Form C

Every keeper of accommodation must report foreign guests to the Registration Officer. Under section 8 of the Immigration and Foreigners Act, 2025, in force since 1 September 2025, the report is now called Form-III (the old Form C). It is filed online on the Bureau of Immigration portal, indianfrro.gov.in, within 24 hours of arrival, and it covers OCI cardholders too. Section 23 of the Act provides for imprisonment of up to three years, a fine of up to ₹3,00,000, or both, for contraventions. When we manage a home, this filing is part of the check-in routine, not an afterthought.

GST in one paragraph

Since 22 September 2025, accommodation priced up to ₹7,500 per unit per day is taxed at 5% without input tax credit, and above that at 18% with credit. Whether you personally need a GST registration, and who accounts for the tax on a platform booking, depends on your turnover and on how the guest books. Settle this with a chartered accountant before the first stay.

Where Hexuvium fits

Several schemes will only register the owner, and we think that is right everywhere: the registration stays in your name. We work under a written management mandate — listing, pricing, guest messages, cleaning, Form-III, the monthly returns where a state asks for them. Where a state requires the owner to live on site, we say so plainly and only take on what the rules allow.

Before you apply anywhere

Frequently asked questions

Is a NIDHI listing enough to host guests legally?

No. NIDHI is the Ministry of Tourism's national database and its homestay classification is voluntary. The registration or classification required by your state still applies.

Do I need to report OCI cardholders staying in my home?

Yes. Under the Immigration and Foreigners Act, 2025, Form-III (formerly Form C) is filed for foreign guests, OCI cardholders included, within 24 hours of arrival on indianfrro.gov.in.

What GST rate applies to a homestay room?

Since 22 September 2025: 5% without input tax credit up to ₹7,500 per unit per day, 18% with credit above that. Whether you must register for GST depends on your situation; ask a chartered accountant.

Can Hexuvium register the homestay in its own name?

No. We keep the registration in the owner's name — some states only register the recorded owner anyway — and act under a written management mandate.

Sources

Updated 27/09/2026 — rules change: always check the latest official text.

Thinking of renting out your home?

Free, no-obligation estimate from Hexuvium, managing short-term rentals since 2015. Prefer WhatsApp? Leave your number — we reply there.

Get a free income estimate
Get a free income estimate