Homestay Rules India 2026 — State-wise Registration, Licences & Tax

Quick answer. Homestay regulation in India is not governed by a single central law. The Ministry of Tourism (MoT) Incredible India Homestay Scheme 2021 is a voluntary classification overlay (Silver / Gold / Diamond), but the mandatory legal layer is each state's own homestay policy — and those policies differ sharply by room cap, fee, validity, fire-NOC threshold, GST handling, and food-service rules. Goa, Himachal Pradesh, Uttarakhand, Kerala,, Sikkim, Madhya Pradesh, and Rajasthan all have explicit homestay rules; states without explicit rules treat homestays as lodging houses under the local Police Act + Shops & Establishments Act. Step 1 of compliance is always state tourism registration. Step 2 is the local municipal trade licence. Step 3 is fire NOC if rooms or floors exceed the threshold. Step 4 is FSSAI only if you sell food to non-staying customers (most homestays don't). GST applies once turnover crosses Rs 20 lakh/year. Police verification of guests + Form C for foreign guests is mandatory in every state. Penalties for non-compliance: Rs 5,000–50,000 per offence + daily compounding fines + property sealing.

This article gives you the comparison table, the step-by-step registration process for the eight major homestay states, and a downloadable checklist.

For all states: police verification of guests is mandatory, foreign guests must be reported via Form C to FRRO within 24 hours, and owner-occupancy is required (you must live in the property).

1. Confirm zoning + society bye-laws — get a copy of the local Master Plan zoning certificate showing residential use. If the property is in a registered cooperative housing society, get a board resolution permitting “homestay activity” and attach to your application.
2. Apply on the state tourism portal — every state with a homestay policy has an online portal: goatourism.gov.in (Goa), himachaltourism.gov.in (HP), uttarakhandtourism.gov.in (UT), keralatourism.gov.in (KL), karnatakatourism.org (KA), sikkimtourism.gov.in (SK), mptourism.com (MP), rajasthan.gov.in/tourism (RJ). Upload PDFs of all documents.
3. Pay the registration fee — Rs 500 to Rs 10,000 depending on state. Online payment + receipt download.
4. Schedule the site inspection — the state tourism inspector visits within 2–4 weeks. Be ready with: rooms made up, fire extinguisher, first-aid, signage outside the property naming it as a homestay, registered guest book.
5. Receive provisional / final certificate — most states issue a 3-year homestay registration certificate. Keep digital + printed copies.
6. Apply for local trade licence — Municipal Corporation (urban) or Gram Panchayat (rural) under the local Shops & Establishments Act. Treat it as a parallel mandatory step — tourism registration alone does not authorise commercial activity.
7. Apply for fire NOC — required only if rooms / floors exceed the state threshold. Inspection by the local Fire Department; certificate valid 1–2 years and renewable.

• Title deed or registered long-term lease (≥3 years)
• Occupancy certificate (or local authority equivalent)
• Property tax receipt (latest year)
• Aadhaar + PAN of owner
• Photos: front elevation, all letting rooms (with bed made), kitchen, common bath, fire extinguisher, signage
• Society NOC (if applicable)
• Self-declaration of owner-occupancy
• Fire-safety self-certification + emergency exit plan
• Floor plan with room layout marked
• Police verification of household help / staff (if any)
• Bank cancelled cheque (for online fee payment + future GST/IT records)

• Portal: goatourism.gov.in → “Homestay Registration”
• Mandatory inputs: society NOC if in a complex, FRRO registration before hosting first foreign guest
• Site inspection: typically within 2 weeks
• Distinct feature: Goa's scheme allows up to 6 rooms, the highest among Indian states for “homestay” specifically
• Renewal: every 3 years; renewal fee Rs 1,500
• Penalty: operating unregistered — Rs 10,000 first-instance fine + property may be sealed

• Portal: himachaltourism.gov.in → “Home Stay Registration”
• Two tiers: Home-stay (1–3 rooms) and Premier home-stay (4–9 rooms — closer to a small B&B)
• Eco-zone restrictions: properties in Kullu-Manali, Lahaul-Spiti, Kinnaur eco-sensitive zones have additional clearances
• Site inspection: 3–4 weeks; thorough inspection due to slope-stability and seismic-zone considerations
• Subsidy linkage: registered homestays in border districts (e.g., Lahaul-Spiti) qualify for the state rural tourism subsidy infrastructure subsidy
• Penalty: operating unregistered — Rs 25,000 first-offence + revocation of any future registration application for 2 years

• Portal: uttarakhandtourism.gov.in → “Homestay Scheme”
• Three categories: Deluxe (4–6 rooms), Standard (2–3 rooms), Basic (1 room)
• Subsidy under Veer Chandra Singh Garhwali Yojana: up to Rs 25 lakh capital subsidy for homestay setup in 12 designated districts; covered in government-schemes article
• Site inspection: 3–4 weeks
• Forest-area properties: additional NOC from State Forest Department for properties within reserved or protected forest areas

• Portal: keralatourism.gov.in → “Classification Scheme”
• Voluntary classification: Diamond, Gold, Silver — encouraged but technically optional (registration is mandatory; classification is value-add)
• Backwater districts: special concessions in Alappuzha, Kumarakom, Kollam — registration available even for traditional houseboats reclassified as floating homestays
• Site inspection: 2–3 weeks
• Distinct feature: Kerala mandates that the host or co-host be fluent in English or one Indian language, given the high international visitor share

• Portal: karnatakatourism.org → “Homestay Policy”
• Special districts: , Chikkamagaluru, Mysuru — high homestay density, dedicated district-level inspection cells
• Site inspection: 2–3 weeks; faster in Bengaluru zone
• Penalty: Rs 5,000 first-offence; doubles on second; 5x on third

• Portal: sikkimtourism.gov.in → “Homestay Scheme”
• Eco-zone primacy: Sikkim is a fully eco-sensitive state — eco-clearance required for properties above 1,800 m elevation
• Cap: up to 5 rooms for individual homestays; “village homestay clusters” treated as separate scheme
• Distinct feature: Sikkim's homestay rules require organic-food self-declaration for in-house meals served to guests; aligned with the state's organic-state branding

• Portal: mptourism.com → “Bed & Breakfast Scheme”
• Heritage incentive: properties in Khajuraho, Orchha, Pachmarhi, Bhedaghat receive a 25% rebate on registration fees
• Tribal-area registration: simpler one-page application for homestays in scheduled tribal areas
• Penalty: standard schedule (Rs 5,000–25,000 escalator)

• Portal: rajasthan.gov.in/tourism → “Paying Guest Scheme”
• Heritage focus: dedicated Heritage Homestay tier with marketing tie-up to RTDC (Rajasthan Tourism Development Corporation)
• Cap: up to 5 rooms for the Paying Guest scheme
• Site inspection: 3 weeks

• Below Rs 20 lakh annual receipts — you do not need to register for GST. Charge guests the room rate without GST. Keep clean records — IT Department can still question receipts based on platform-shared data.
• At or above Rs 20 lakh annual receipts — GST registration becomes mandatory. Apply on gst.gov.in within 30 days of crossing the threshold.
• Rates as on April 2026: 12% GST on room tariff up to Rs 7,500/night, 18% above Rs 7,500/night.
• §9(5) CGST — when listed on Airbnb / MakeMyTrip / Booking.com, the platform itself collects and pays GST on hotel-room services regardless of the host's turnover. This eases the administrative burden but does not exempt the host from registering at the Rs 20 lakh threshold for direct-booking revenue.
• Composition scheme — homestays with turnover under Rs 1.5 crore can opt for the composition scheme (6% GST without input credits) — simpler returns but no credit on capital expenditure.

A homestay serving breakfast and dinner only to staying guests does not require FSSAI registration — meals are part of the lodging service. However:

• If you sell tiffins or packed meals to outside customers → FSSAI Basic Registration (Rs 100/year, turnover up to Rs 12 lakh) at fssai.gov.in.
• If you operate a small public-facing café within the homestay premises → FSSAI State Licence (Rs 2,000–5,000/year).
• If you cure pickles, jams, honey for sale → FSSAI mandatory regardless of homestay status.

Every state mandates maintenance of a guest register (also called “C-Form register” or “lodger's book”). Required entries per guest:

• Name and address of the guest
• ID type (Aadhaar / Passport / Voter ID / Driving Licence) and ID number
• Date and time of arrival + expected departure
• Purpose of visit
• Phone number
• Signature of guest

The register is inspectable on demand by police, tourism inspector, FRRO officer. Maintain it bound, page-numbered, in pen (no pencil, no whiteout). Many states accept a digital register if it produces signed daily printouts. Foreign guests must additionally be reported via Form C at indianfrro.gov.in within 24 hours — failure attracts Foreigners Act §14 penalties (up to 5 years jail). Detailed step-by-step procedure: police verification + FRRO + state circulars for homestay operators.

• [ ] Master Plan zoning verified (residential)
• [ ] Society NOC (if apartment)
• [ ] Title deed / lease verified
• [ ] Occupancy certificate
• [ ] Property tax receipt
• [ ] Photos uploaded — exterior, rooms, kitchen, bath, fire ext., signage
• [ ] Floor plan attached
• [ ] State tourism portal registration submitted
• [ ] Registration fee paid + receipt saved
• [ ] Site inspection scheduled
• [ ] Site inspection passed
• [ ] Tourism registration certificate received (3-year validity)
• [ ] Municipal trade licence applied
• [ ] Fire NOC applied (if applicable)
• [ ] Guest register procured (bound, page-numbered)
• [ ] FRRO portal account created
• [ ] GST registration evaluated (turnover projection)
• [ ] Bank current account opened
• [ ] Property + liability insurance in place
• [ ] Website + WhatsApp Business set up

“State homestay rules — at a glance” — a horizontal scrolling card-deck with one card per state, each showing:

• State flag-strip top
• Room cap (large number, e.g., “6”)
• Fee (Rs)
• Validity (years)
• Distinct feature in 8 words (“Eco-zone restrictions” / “Heritage rebate”)
• Portal URL

Stacked-bar chart in the right margin: relative homestay density per state (Goa highest per capita, MP lowest among the eight).

• Hero — a hand placing a “Registered Homestay” plaque on a wooden front door of a hill-station property
• Mid — split-frame photo: organised guest register with pen + Form C on a desk, vs a chaotic notebook
• Pre-FAQ — the 7-step universal process as a horizontal flow with icons (file upload, rupee, magnifying glass for inspection, certificate, building, fire extinguisher, key)

Building a homestay-specific website + integrated booking + WhatsApp Business + Google Business Profile from scratch takes 7 days and a comfortable grasp of WordPress / Wix / channel-manager tools. If you'd rather not assemble it yourself, Big Helpers is a long-running Indian web-development company (operating since 2008) that runs a dedicated package for homestay owners — domain, hosting, custom-designed homestay-friendly site, room + rate calendar, direct-booking widget, payment gateway (Razorpay / UPI), Google Business Profile setup, WhatsApp Business automation, and channel-manager integration with Airbnb / MakeMyTrip / Booking.com — set up end-to-end in two weeks. They also provide ongoing management (content updates, photo refresh, review-aggregation, monthly performance dashboard) so the operator can stay focused on hosting. Their homestay segment is at bighelpers.in/segments/homestay-owners.

This is a third-party recommendation, not an affiliation. You can equally build the same stack yourself using the 7-day setup walkthrough above. The cross-link is here purely because operators routinely ask “who can build this for me end-to-end?” — and a working, established Indian operator in this space saves the search.

• 1. Homestay in India 2026 — pillar guide
• 3. How to start a profitable homestay (Rs 5–10 lakh)
• 4. Government schemes for homestay owners
• 5. Police rules for homestays
• 6. Why every homestay needs a website
• 7. Legal checks before booking a homestay
• 8. Unregistered homestays — legal risks

No. The MoT classification (Silver / Gold / Diamond) is a quality-grade overlay on top of state registration. State registration is mandatory; MoT classification is voluntary.

No. First check society bye-laws + Master Plan zoning. Then apply for state tourism registration; once granted, apply for trade licence and fire NOC. Operating before registration is unregistered-homestay territory — read legal-risk deep-dive on unregistered homestay operations.

No. Registration is state-specific. If you operate properties in multiple states, register in each state separately.

Yes. Airbnb listing does not exempt you from state homestay registration. The platform may collect GST on your behalf under §9(5), but state tourism / police / fire compliance remains the host's obligation.

States without homestay rules treat such properties as lodging houses under the local Police Act and Shops & Establishments Act. You'll need a lodging-house licence from the local police + trade licence from the municipality. This is more cumbersome — homestay-specific rules are easier where they exist.

Yes, with a registered long-term lease (typically ≥3 years) and a written NOC from the landlord. The lease must permit “homestay activity” specifically, and the landlord's signature is needed on the state tourism application.

Every 3 years in most states. Renewal is simpler than fresh registration — typically a single online form + receipt of the renewal fee. Late renewal = re-application as a fresh registration.

Strongly recommended though not always mandatory. Property insurance + Rs 1 crore third-party liability cover is the baseline. Some states (Goa, Himachal) make liability insurance a condition of premier-tier registration.

• Ministry of Tourism — Incredible India Bed & Breakfast Establishment / Homestay Scheme, 2021
• Goa Department of Tourism — Homestay Scheme guidelines (latest revision)
• Himachal Pradesh Tourism — Home Stay Rules, 2008 (last amended 2024)
• state homestay policies
• Kerala Tourism — Classification Scheme for Homestays
• (varies by state) Tourism — (varies by state) Tourism Policy 2024–29 — Homestay chapter
• Sikkim Tourism Department — Homestay Scheme guidelines
• MP Tourism — Bed & Breakfast Scheme
• Rajasthan Tourism — Paying Guest Scheme
• The Foreigners Act, 1946 — §14 + Form C reporting
• Central Goods and Services Tax Act, 2017 — §9(5) on platform-collected GST
• The Food Safety and Standards Act, 2006

Last reviewed: 4 May 2026 — RTI Wiki editorial team. State-policy citations verified as on 4 May 2026.