Goa Homestay and B&B Scheme (2026): ₹2 Lakh Grant for Hinterland Homestays, Eligibility and How to Apply

Goa’s Homestay and Bed & Breakfast Scheme, launched on 7 August 2025, gives a one-time grant of ₹2 lakh to registered homestays and B&Bs in seven hinterland talukas: Sattari, Dharbandora, Sanguem, Bicholim, Ponda, Quepem and Canacona. It replaced the 2023 policy’s reimbursement model, under which owners had to spend first and claim back furnishing costs after a year. The unit must be registered with the Tourism Department, classified Silver or Gold, and owned by a Goan. The scheme also pays half the cost of one trade show a year, up to ₹50,000, and runs for five years. This guide covers eligibility, documents, how to apply and the other support available to hinterland homestays.

The scheme at a glance

Point	Position
Grant	One-time ₹2 lakh for infrastructure
Trade shows	50% of costs, up to ₹50,000 a year
Where	Sattari, Dharbandora, Sanguem, Bicholim, Ponda, Quepem and Canacona talukas only
Size of unit	Up to 6 lettable rooms and 12 beds
Owner	Goan by birth or by 15 years’ residence
Registration	Under the Goa Registration of Tourist Trade Act, 1982, as a homestay or B&B, classified Silver or Gold
Period	Five years from August 2025, extendable
Apply through	The UDP Goa (MSME) portal, which redirects to Goa Online

Registration is open across Goa, but the grant is only for units in these seven talukas. The first phase announced in the Assembly was for 100 homestays, and the scheme’s stated focus is women-led rural households and self-help groups.

Homestay or B&B?

• Homestay: the owner and family live on the premises and let up to six rooms.
• Bed and breakfast: the owner does not live there, but an operator or agent must live on the premises.
• Room standards: rooms of at least 120 sq ft and bathrooms of at least 30 sq ft (Silver) or 40 sq ft (Gold).
• Not Goa’s rule: a 2026 amendment that allows eight rooms and drops the owner-residence condition is a notification of the union territory of Dadra and Nagar Haveli and Daman and Diu. It does not apply in Goa, even though some compliance websites label it “Goa, Daman and Diu”.

Step 1: register with the Tourism Department

1. Apply on Goa Online or at Paryatan Bhavan, Patto, Panaji, under the homestay or B&B category.
2. Attach ownership proof, identity proof, the house tax receipt from the panchayat, a fire NOC, and a society NOC or co-owners’ NOCs where they apply. A promoter can apply under a power of attorney.
3. Pay the registration fee, about ₹1,000 a year for a homestay, and get the unit inspected and classified Silver or Gold.
4. Install the TIME guest-registration software and file Form C for foreign guests and the monthly statistics.

Our guide to renting a villa or homestay in Goa covers registration, the Airbnb listing rule and penalties in detail.

Step 2: apply for the grant

1. Log in to the UDP Goa portal (msme.goa.gov.in), choose the Homestays and Bed and Breakfast Scheme, and continue to Goa Online.
2. Upload the checklist of facilities (Annexure II) and the declaration (Annexure III).
3. Attach identity proof, ownership proof attested by a gazetted officer or notary, a certificate of the year of construction, proof of the registration fee, and photographs of the kitchen, rooms, bathrooms, gate, parking and garden.
4. Track the application with the Tourism Department ([email protected]).

Other benefits for registered homestays

• Utility tariffs: the policy promises domestic electricity and water tariffs for the sanctioned load, and property tax at residential rates. In 2026 the Electricity Department has been moving unregistered villas and rentals to commercial tariff using Tourism Department data, so registration matters.
• Marketing: listing on Goa Tourism platforms, training, and the department’s tie-up with Airbnb.
• MUDRA loans: since the Union Budget 2025-26, homestays have their own MUDRA loan category, including rural homestays; apply through the Jan Samarth portal.
• Tribal villages: under PM-JUGA, households in eligible tribal villages can get up to ₹5 lakh for two new rooms and up to ₹3 lakh for renovation.
• Not for homestays: the hinterland “tax holiday” announced in Goa’s 2025-26 Budget (a 50% state GST rebate and stamp duty exemption in the same talukas) is for hotels of three stars and above and hospitals, not homestays.

Why the hinterland

Goa’s tourism policy has pushed visitors away from the coast towards eco, heritage and spiritual tourism. Recent projects include the Harvalem eco-tourism project, the Ekadasha Teertha temple circuit through Sattari, Dharbandora, Canacona and Quepem, and planned eco-cottages at Chapoli Dam and Anjunem-Keri, while the Forest Department promotes eco-tourism around Mollem, Cotigao, Netravali and Mhadei. Homestays near these routes are what the scheme is designed to support.

Tax points

• The grant is income: a government grant is included in income under section 2(49)(w) of the Income-tax Act, 2025, unless it is reduced from the cost of a depreciable asset. If the ₹2 lakh goes on furniture or a water heater, reduce it from their cost in your books.
• GST: rooms up to ₹7,500 a night attract 5% GST without input tax credit from 22 September 2025. A homestay needs GST registration once turnover crosses ₹20 lakh. For rooms booked through platforms such as Airbnb, the platform may pay the GST, so check how your bookings are taxed before deciding on registration.
• Income tax on the business: homestay income is business income. A small owner can opt for presumptive tax under section 58 of the Income-tax Act, 2025.

Frequently asked questions

How much is the Goa homestay grant?

A one-time ₹2 lakh under the Homestay and Bed & Breakfast Scheme of August 2025, plus 50% of one trade show’s cost a year up to ₹50,000.

Which talukas qualify for the Goa homestay grant?

Sattari, Dharbandora, Sanguem, Bicholim, Ponda, Quepem and Canacona. Homestays in coastal and urban areas can register but do not get the grant.

Can a non-Goan get the homestay grant?

No. The owner must be Goan by birth or by 15 years’ residence.

How many rooms can a homestay in Goa have?

Up to six lettable rooms and 12 beds. The eight-room rule reported in 2026 applies to Daman, Diu and Dadra and Nagar Haveli, not Goa.

TAXAJ’s Goa team handles tourism registration paperwork, grant applications, GST and books for homestays and villas, and runs accounting for Goa hotels and restaurants. Talk to our Goa office.

Last updated 27 October 2026. Sources: Goa Homestay and Bed & Breakfast Policy (December 2023) on goatourism.gov.in; launch of the Homestay and Bed & Breakfast Scheme (7 August 2025) and the Tourism Minister’s statement in the Assembly (29 July 2025); scheme listing on msme.goa.gov.in; Goa Registration of Tourist Trade Act, 1982 and Rules, 1985; Goa Budget 2025-26 and 2026-27; Ministry of Tourism answers in Parliament (2025-26) on MUDRA loans for homestays and PM-JUGA; Income-tax Act, 2025, sections 2(49) and 58; Notification 11/2017-Central Tax (Rate) as amended. General information only; confirm the current terms with the Tourism Department before you apply.