Cost of ho­tels up by 10% un­der GST

Best Bou­tique Resort - Moun­tain Club Resort

TravTalk - India - - AWARDTALK -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.