GST Council slashes tax rate on hotel tariffs
The move comes in a wake to meet the targetted growth for the industry
The most-awaited move by Modi-led government on GST (Goods and Services Tax) has brought about a much-needed relief to the hospitality and tourism industry. The GST Council chaired by finance minister; Nirmala Sitharaman recently announced revision of tax rates on hotel tariffs in order to meet the targeted growth for the industry. As per the announcement, hotels with room tariffs upto INR 1,000 won't be charged any GST. Rooms with tariff of INR 1,001-7,500 will be levied with 12 per cent tax whereas rooms more than INR 7,500 will be taxed with 18 per cent. Not just the rates, even the tax slabs were rearranged, which was earlier 28 per cent.