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This Is What Hotel Associations Are Demanding to the Government Regarding GST Slabs

Hotel associations are actively engaging central and state government officials in their push for a rollback of the 28% tax on hotels where tariffs top Rs 5,000.

The government on Friday said the Goods and Services Tax (GST) Council may go for a revision in the fitment of some goods and services in the tax slabs after reviewing industry representations. The council is scheduled to meet on June 11.

According to industry executives, the tourism ministry has submitted a representation to the finance ministry in this regard after consultations with hoteliers.

The Federation of Associations in Indian Tourism & Hospitality, or FAITH, said it is hoping for a GST rate of 18% for the industry as post the 28% rate, hotels with a tariff of Rs 5,000 and above will be 7% higher than the current average rate, and restaurants in five-star hotels will be 9.5% higher.

The GST Council has pegged GST rates for air-conditioned eateries and those with liquor licences at 18%, non-air-conditioned restaurants at 12%, hotels charging room rentals between Rs 1,000 and Rs 2,500 at 12%, Rs 2,500 and Rs 5,000 at 18%, and above Rs 5,000 at 28%. Hotels with tariffs below Rs 1,000 have been exempted from tax.

Oberoi said FHRAI members had been invited for a meeting by the GST sectoral group on Saturday.

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