Ask ten hosts whether you need a licence to run an Airbnb in India and you'll get ten answers. That's because the truthful answer is: it depends on your state, your property type, and your turnover. Here's how to work out what applies to you.

The three layers of "permission"

1. Your building or society

If your place is in an apartment complex, start with the society or RWA. Many societies have bye-laws on paying guests, and a written NOC protects you from the most common shutdown scenario — a neighbour complaint. Independent houses skip this layer.

2. Your state's homestay scheme

States like Kerala, Himachal, Uttarakhand, Goa and Rajasthan run official homestay/bed-and-breakfast registration schemes through their tourism departments. Registration is usually cheap, and often comes with perks — listing on state tourism portals, and clarity that you're operating legitimately. Some states also expect commercial property tax or electricity rates once you're running at scale, so read your scheme's fine print.

3. Local police / municipal rules

Separate from registration, hosts are expected to keep a record of guest identity, and to file Form C with the FRRO for every foreign guest within 24 hours of arrival. This applies whether or not you've registered under a tourism scheme — it's the rule new hosts most often miss. We cover it fully in the guest ID & Form C walkthrough.

When GST enters the picture

  • Registration becomes mandatory once your turnover crosses the threshold — ₹20 lakh for services in most states, ₹10 lakh in special-category states.
  • Room tariffs attract GST at a rate tied to the nightly price — see the current hotel GST slabs.
  • Below the threshold you can operate without GST — but the moment a corporate guest asks for a tax invoice with a CGST/SGST split, you'll want to formalise. Our GST invoicing guide for hosts explains exactly when and how.

What happens if you skip all this?

Plenty of hosts run informally for years — until something forces the issue: a neighbour complaint, a police verification drive, a foreign guest you weren't set up to report, or a tax notice once UPI volumes make your income visible. The cost of doing it right upfront is a few forms and a register. The cost of getting caught out is your listing, your reputation, and sometimes a penalty.

The record-keeping half of compliance is automatic with Bedlo — ID-scan check-in, a digital guest register, and Form C for foreign guests. Free for small homestays.

New to hosting? Start with the full How to Start an Airbnb in India guide.