Tourism Ministry Denies Any Plan for Reducing GST Rate on Hotel Rooms

There is no intention of the tourism industry to seek help for the reduction in the goods and service tax towards the hotel rooms to 12%, stated by the Union Tourism Minister.

The minister knew from the tax imposed on several tourism products as well as services which consist of hotels because this will affect the tourism of the country with respect to the countries, the minister commented in Rajya sabha.

“At present, the Ministry of Tourism has no plan to approach the GST Council for reducing GST (goods and services tax) on all hotel rooms to 12 percent, since the GST Council decides the rate of taxation Get to know about GST (Goods and Services Tax) council 1st to 43rd meeting updates and decisions taken by members. We have covered 1st meeting to last meeting decisions. Read more after taking into consideration the factors affecting various segments of business as well as to ensure optimum revenue generation required for the overall development of the economy.”

He indeed said to the council about the problem with GST which the tourism industry is facing in front of Finance ministry from time to time amendment which has been build to the GST slabs for the sector.

Read Also:GST Impact on Hotel & Tourism Industry After Rate Cut Have a look at the brief details of GST (Goods and Services Tax) impact on Hotel and Tourism industry after rate cut as stated by Industrial Experts. Read more

The applicability limit which was 28% GST which gets rises from Rs 5000 to Rs 7000 per room per day through the ministry of finance. The applicable rates on the determination grounds will be amended through the declaration of the charges Patel comments.

There is a reduction of 5% in the GST Grab the information of revised GST slab rates on consumer products in India, Although the GST council finalized the slab rates like 5%, 12%, 18% and 28%. Read more on restaurants and cafes whatever be the condition is an air conditioner or not.

If the restaurant is situated inside the campus of the hotel, club, or any commercial place which is said towards the residential or lodging views with regular charges of Rs 7,500 per day per unit or beyond, then the levied tax will be 18 percent, Patel comments.