Cost of hotels up by 10% under GST
Best Boutique Resort - Mountain Club Resort
After the announcement of GST regime with different tax slabs for hotel rooms, the hospitality industry is hoping the government will reconsider a single slab of 18 per cent, to create a level playing field, apart from giving a boost to tourism, informs Benny George, General Manager, Mountain Club Resort. He says, “With room rates above
` 7,500 being slapped with a 28 per cent GST, hotel companies are seeking a reduction to bring it back to the earlier level at which the luxury and service tax was about 20 per cent, which remains the major challenge for the hospitality industry.” He further adds that while GST is a gross tax and there is input credit available, the cost for hotel companies has risen by almost 10 per cent. “The government should realise that while neighbouring countries like Myanmar, Thailand, Singapore, Indonesia etc. levy taxes ranging from 5-10 per cent, we cannot afford to have such high taxes,” he says.