The Himachal Pradesh government has introduced significant changes to the Home Stay Rules 2025, aiming to streamline regulations and boost revenue from the growing tourism sector. One of the most impactful amendments is the mandatory requirement for homestay operators to obtain a Goods and Services Tax (GST) number and file monthly returns.
Previously, homestay businesses were exempt from such provisions, as the scheme was designed to support unemployed individuals in rural areas without imposing financial burdens akin to large commercial enterprises. However, under the new rules, the GST number must be provided in the registration form, specifically in column 14, marking a substantial shift in the compliance landscape for home stay operators.
In addition to the GST mandate, the government has significantly raised the registration fee for homestays. The fee has increased from a nominal Rs 100 to Rs 3,000 — a 300-fold hike. Moreover, homestays with 4 to 6 rooms in municipal corporation areas will now pay an annual registration and renewal fee of Rs 12,000. In TCP, SADA, and Nagar Panchayat areas, the fee is Rs 8,000, while in Panchayat areas, it is Rs 6,000. For smaller homestays with 1 to 3 rooms, the fees are set at Rs 8,000, Rs 5,000, and Rs 3,000, respectively, based on the location.
These changes are part of the state’s broader effort to increase revenue through the Home Stay Scheme, which was initially intended to generate employment and promote rural tourism. However, the new financial and administrative obligations have raised concerns among operators, who now face additional costs to obtain a GST number and hire chartered accountants for monthly returns, irrespective of whether they earn income from their homestay.
Further, the updated rules introduce several operational mandates. Homestay operators will be required to arrange garbage disposal in accordance with municipal laws, install fire-fighting equipment, and maintain comprehensive records of guests. Passport details of foreign tourists must be documented without exception. Additionally, CCTV cameras must be installed in common areas, enhancing security but adding to operational costs.
The government notified the Home Stay Rules 2025 on February 14, and has invited objections and suggestions from the public until February 28. Feedback can be sent to the Director of Tourism and Civil Aviation Himachal Pradesh via email at tourism@hp.gov.in or through post.
While the government argues that these amendments will professionalize and regulate the sector more effectively, many homestay operators worry that the increased costs and administrative responsibilities may undermine the scheme’s original purpose of providing livelihood opportunities for rural families.
