Due to decrease in GST, hotel rooms will be cheap, food bill will also be less, know

With the implementation of the new GST rates, hotel rooms with ₹ 7,500 or less will become ₹ 525 cheap from Monday. The hotel sector believes that the rate of Goods and Services Tax (GST) for the hotel industry has been reduced from 12% to 5%, and the lack of input tax credit (ITC) is expected to promote the industry. Companies say that this will increase revenue, boost investment and hotels will be able to provide better services to guests across the country.

Currently, 12% GST with ITC on daily rented hotel rooms up to ₹ 7,500. According to the Hotel Association of India, this deduction will reduce the fares of the rooms by 7%. Similarly, tourists will get the benefit of GST on food and drink.

Nikhil Sharma, Managing Director and Chief Operating Officer (COO) of Radisson Hotel Group (South Asia), said that GST cuts will provide relief to hotel operators and will also benefit tourists.

The owner of brands like Ramada, Rahul Makaros, managing director of Eurasia Market of Vindham Hotels and Resorts, said India’s travel and hospitality are growing firmly, and GST reform has come at the right time.

Earlier this month, the GST Council approved major changes in the indirect tax system. Under these amendments, tax rates have been reduced to only 5 percent and 18 percent. These changes will be applicable from the first day of Navratri, 22 September.