Talking about the hotel industry and their individual tariffs, the Hotels with tariff falling in between Rs 2,500 to Rs 5,000 will be levied GST of 18 per cent, whereas hotels with tariff of above Rs 5,000 will come under 28 per cent tax slab. And after which, hotels with tariff under Rs 1,000 are exempted from the GST scheme.
As the ministers propose levies on the services, the five-star hotels and rooms that offer a night stay at Rs 5000 may be levied with 28% GST. The hotel rooms charged between Rs 500 or 1000 a night will be exempted from GST.
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The GST Council is looking at a four-tier structure for services such as restaurants and hotels. While a non-AC restaurant may be kept under the lowest slab of 5%, while the other restaurants with AC services attract 18% tax. Also, sources reveal that the transport services may be kept under the 5 percent slab to ensure the smooth economy and handle price rise.
It has been also found that the present rates for the five-star restaurants are higher than the suggested taxes under the GST rules. The current structures show more than 28 percent tax on this sector.
