Nagpur Residential Hotels Association (NRHA) welcomed the GST council’s decision to reduce tax rates for hotels, which had been a long standing demand of the hospitality industry.
Tejinder Singh Renu – president of NRHA said that the motion to bring down the tax from 28% to 18% for hotels is highly appreciable. As of now hotels with tariffs of Rs.7500 and above were taxed at 28% which has now been brought down to 18%. Most likely with this 28% tax slab, the hotels in India were among the most taxed in the world. Further Hotels between Rs.1001 to Rs.7500 will attract a tax of 12%. These changes will come into force from October 1, 2019.
Renu further said that these changes will benefit the luxury hotel sector which will certainly give a big boost to tourism especially in foreign guests category. Some requisite changes must be brought in lower section hotels by raising the threshold limit of the GST up to Rs.1500.
Deepak Khurana – secretary of NRHA said that for lower segment hotels this 18 per cent GST is still high and it should be reduced to around 12 per cent, which will actually benefit the lower and middle class customers. Such GST rate rationalization for hotels is an extremely positive development.
NRHA is grateful to the Finance Minister and GST Council for such reduction which will boost the tourism and will bring job opportunities in the sector.
Other Office Bearers of NRHA on dais were Immediate Past President Prakash Trivedi, Vice Presidents Inderjeet Singh Baweja & Dr. Ganesh Gupta, Treasurer Vinod Joshi and Joint Secretary Nitin Trivedi.