Finally, the GST council has provided some relief to the hospitality industry through the decision taken in the recent 28th GST council meeting held on 21st July.
In the decision, it was mentioned that from now onwards, the GST will be levied only on the actual tariff of the room when it is getting booked by the customer.
Earlier there was the method of levying GST on the declared tariff of the rooms which at times made confusion in a case when the tariffs were discounted for any offers.
The issue struck as the customers argued regarding the 28 per cent GST even after the tariff reaches below INR 7500 threshold limit for 18 per cent GST rate on hotels.
There were some other cases, as explained by a chairman of hospitality group, “Earlier if your tariff was Rs 6,000, for instance, and in winters it went up to Rs 8,000 or Rs 9,000 you would come in the category of 28% all through the year, That was regressive. That anomaly is over now.”
Therefore, all the members of the association of hotel industry have commended the decision and put rest on the growing issues of GST rates under the hospitality industry.
The previous year, the issue was creating confusion within the travellers as the declared tariff was not much of the sense, and the GST rates were applied even if the offers made the room rates down from 7500.
