You accept a ₹10,000 booking for a December weekend. The guest pays more than ₹10,000, and you receive less. Somewhere in between, Airbnb, the GST department and the Income Tax Department all take a share.
Most Jaipur hosts we speak to know their nightly rate to the rupee, but not where the rest of the money goes. This season it matters more than usual. Airbnb's Q3 2026 results, released on 5 November 2026, show nights booked by Indian travellers grew over 60%, and first-time Indian bookers grew over 80%. More bookings means more hosts crossing tax thresholds for the first time.
Two dates are close. Your Form 16A for July-September (the certificate of tax Airbnb deducted) is due around 15 November, and the third advance tax instalment is due on 15 December 2026. Here is a plain guide to what applies to you.
1. GST on Your Room Rent: 5% for Most Jaipur Listings
Since 22 September 2025, GST on hotel and homestay rooms priced at ₹7,500 or less per night is 5%, without input tax credit. The old 12% slab is gone. Rooms above ₹7,500 a night pay 18%, with input credit (Angel One, 9 Sep 2025). Airbnb works this out "per unit per day": an entire home is one unit, and rooms listed separately with their own rates are separate units (Airbnb Help Centre, article 1991).
For a typical Jaipur 1BHK or 2BHK, that means 5%.
Who actually pays it depends on whether you are GST-registered:
- Not registered (turnover up to ₹20 lakh): Airbnb collects GST from the guest and pays it to the government itself, under Section 9(5) of the CGST Act. You do not file GST returns for these bookings.
- Registered: Airbnb collects the GST from the guest and passes it to you, about 24 hours after check-in, and you pay it to the government. Add your GSTIN to your Airbnb account first, because payouts only apply to bookings accepted after you add it, and cannot be backdated (Airbnb Help Centre, article 1991).
You must register once your total turnover from goods and services crosses ₹20 lakh a year. In Rajasthan the normal ₹20 lakh limit applies. The threshold follows the state where the listing is, not where you live. Remember that direct bookings, from WhatsApp or your own website, are your own GST supply and count towards the same turnover.
2. TCS: 0.5% for GST-Registered Hosts
If you are registered, Airbnb also collects Tax Collected at Source (TCS) under Section 52 of the CGST Act and deposits it against your GSTIN. The rate was cut from 1% to 0.5% (0.25% CGST plus 0.25% SGST, or 0.5% IGST) by Notification 15/2024-Central Tax, dated 10 July 2024.
This is not an extra tax. It shows up as a credit in your GST cash ledger, and you pay GST on your bookings net of the TCS already deposited. Check it each month against your GSTR-2B so nothing is lost.
3. TDS: 0.1% of Your Gross Earnings
Airbnb is an e-commerce operator under income-tax law, so it deducts Tax Deducted at Source (TDS) from your payouts. The rate fell from 1% to 0.1% from 1 October 2024, and it is charged on the gross amount, not on your payout after fees (TDSMAN, Sep 2025). The new Income-tax Act, 2025, in force since 1 April 2026, renumbered the sections but kept the 0.1% rate (Deccan Herald; CA Surekha Ahuja, Apr 2026).
Three things to know:
- No PAN means 5%. If Airbnb does not have a valid PAN for you, TDS jumps to 5%, which is 50 times higher.
- Small hosts can be exempt. Resident individuals and HUFs who give their PAN or Aadhaar and earn ₹5 lakh or less a year through the platform are not deducted.
- TDS is not lost money. It is an advance against your income tax. Download Form 16A each quarter and claim it in your return.
A Worked Example: Where ₹10,000 Goes
Take a Jaipur 2BHK at ₹10,000 for a two-night stay, listed by an individual host who is not GST-registered:
- Guest pays: ₹10,000 plus 5% GST of ₹500 = ₹10,500 (plus any cleaning fee you set)
- GST: Airbnb pays the ₹500 to the government
- Airbnb service fee: most listings now carry a host-only fee of about 15.5%, or ₹1,550
- TDS: 0.1% of ₹10,000 = ₹10 (nil if you qualify for the ₹5 lakh exemption)
- Your payout: roughly ₹8,440
If you are GST-registered, the ₹500 GST comes to you to pay, and about ₹50 of TCS is deposited against your GSTIN as a credit. Fees and exact amounts vary by listing, so always check the earnings breakdown in your Airbnb dashboard.
4. Income Tax: House Property or Business?
Your Airbnb earnings are part of your income and must be shown in your return. Airbnb may report host income to the tax authorities, and a mismatch with your return can lead to questions (Airbnb India Tax Guide 2025).
The big choice is the head of income:
- Income from house property: usual for a residential home rented out simply. You get a flat 30% standard deduction after municipal taxes, plus home-loan interest. You cannot claim actual expenses such as cleaning or linen separately.
- Business income: more likely if you run several listings, turn them over often, or provide services like meals and housekeeping. You claim actual expenses, including Airbnb fees, cleaning, laundry, toiletries, repairs, utilities and depreciation on furniture and appliances.
Which one applies depends on "the nature and scale of activity, not intention" (CA Surekha Ahuja, Apr 2026). A professional can tell you which fits, but either way, clean records decide how much you can claim.
Key Dates for Jaipur Hosts
- Around 15 November 2026: Form 16A for July-September TDS available
- Every month: GSTR-1 and GSTR-3B for registered hosts (around the 11th and 20th); match TCS in GSTR-2B
- 15 December 2026: advance tax, 75% of your year's tax due by now
- 31 December 2026: last date for a belated or revised return for FY 2025-26
- 15 March 2027: final advance tax instalment (100%)
Advance tax applies if your total tax for the year, after TDS, is ₹10,000 or more.
A 7-Step Tax Plan for This Season
- Check your PAN on Airbnb today. One missing detail turns 0.1% TDS into 5%.
- Download every Form 16A. Save them in one folder and match them with your Annual Information Statement (AIS) on the income-tax portal.
- Track your turnover against ₹20 lakh. Add Airbnb, Booking.com and direct bookings together. A host with three busy flats can cross it in one peak season.
- If registered, add your GSTIN on Airbnb before the next booking, and reconcile TCS every month.
- Estimate your December advance tax now. Peak season income from weddings, the Jewellery Show and Christmas can push you over the ₹10,000 tax line.
- Keep a proper invoice for every expense. Cleaning, laundry, linen, restocking and repairs are only deductible under business income if you can prove them.
- Talk to a CA once a year about house property versus business income, especially if you run more than one listing.
How Swabha Helps Keep Your Books Clean
Step 6 is where many hosts lose money. Cash payments to a part-time cleaner leave no paper trail. At Swabha, every turnover, linen swap and restocking visit comes with a proper invoice and a photo report, so your housekeeping costs are documented, month by month, ready for your CA.
Want housekeeping that is spotless and properly invoiced? Message Swabha on WhatsApp at +91-96490-96964 or email info@swabha.in.
Also read: Airbnb's 20 Nov Guest ID Rule vs Indian Law and Rajasthan Homestay Scheme 2026: What Jaipur Hosts Must Know.
This article is general information, not tax or legal advice. Tax rates, thresholds and dates can change, and your own position depends on your facts. Confirm with gst.gov.in, incometax.gov.in or a chartered accountant before acting. Fee and payout figures in the example are illustrative.
Sources: Airbnb Help Centre, Guidance on GST for India hosts (article 1991); Airbnb Help Centre, TDS on payouts (article 2883); Airbnb India Tax Guide 2025 (PDF); Airbnb Q3 2026 shareholder letter, 5 Nov 2026 (SEC); Angel One, GST cut on hotel rooms below ₹7,500, 9 Sep 2025; Legal 500, Reduction in rate of GST collected by e-commerce operators (Notification 15/2024-CT), Jul 2024; TDSMAN, Section 194-O TDS on e-commerce payments, Sep 2025; Deccan Herald, Income Tax Act 2025 to come into effect from 1 April 2026; CA Surekha Ahuja, Airbnb hosts in India: complete compliance, Apr 2026; The Tribune, Income tax deadlines FY 2026-27, 14 Apr 2026.