The GST or Goods and Services Tax Council on Friday slashed the rate on hotel room tariffs. The move was welcomed by luxury hotel chains. The tax on room tariff of above Rs. 7,500 was lowered to 18 per cent from the existing 28 per cent. The Council also decided that rooms with a tariff between Rs. 1,001 and Rs. 7,500 will now pay a GST of 12 per cent, as against the earlier tax rate of 18 per cent.
Dr Ankur Bhatia, Executive Director of the Bird Group and Hotelier-Brand Custodian, Roseate Hotels and Resorts said, “The government has done a good job in rationalising tariffs and has enhanced the credibility of India as a tourist destination. This should also boost spending sentiment as people now know they will have to pay lower taxes.”
Sanjeev K Nayar, General Manager, ITC WelcomHeritage said that the Council’s decision to lower GST on room tariffs ‘will certainly increase occupancy’.
According to Anurag Dua, COO, Amatra Hotels and Resorts, this move will boost competitive pricing for the sector just ahead of the festive season. ‘This move will help us in offering our rooms at a far more competitive price and in turn greatly benefit our customers. We expect savings of 6-10 per cent on each booking for customers which will especially boost domestic tourism across India,” he said