The GST Council on September 20 decided to lower GST rates on hotel tariff and outdoor catering, giving a boost to the hospitality sector.
Daily room tariff beyond Rs.7,500 per day will attract GST at the rate of 18 percent as against the existing 28 percent. Room tariff between Rs.1,000 and Rs.7,500 will continue to attract 12 percent GST. There will be no GST on room tariff up to Rs.1,000.
The Centre had on September 18 said it will certainly take up the issue of “hefty” GST on hotel rooms tariff in the meeting of its council as it impacts the tourism industry. This was stated by Rupinder Brar, Additional Director General, Ministry of Tourism.
“The government is sensitive to the needs of the industry and I am sure that the government will be looking at various dimensions and the fact that is impacting tourism,” Brar told reporters on the sidelines of the Odisha Tourism Conclave in Bhubaneshwar.
The ADG’s statement is significant as it came two days after the Tourism Ministers’ Conclave at Kovalam in Kerala, where different states had expressed concern over the high GST rate on hotel rooms and demanded a reduction.
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