GST: If you are fond of travelling then there is good news for you. The GST Council has reduced the tax on hotel rooms. Now only 5% GST will be levied on hotel rooms with rent up to Rs 7,500
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GST Council: If you are fond of travelling, then there is good news for you. GST Council has reduced the tax on hotel rooms. Now only 5% GST will be levied on hotel rooms with rent up to Rs 7,500. Earlier, 12% tax had to be paid on these. These new rates will be applicable from 22 September. This means that now celebrating holidays will become even cheaper.
Light on the pocket, fun in travel
Rajesh Mago, co-founder of online booking platform MakeMyTrip, says that with the reduction in tax, staying in a hotel will become easier. When the cost of staying will be less, people will travel more. This will also give a boost to the economy.
Hotel industry welcomed it
Hotel businessmen have also appreciated this decision. Radisson Hotel Group’s South Asia Head Nikhil Sharma says that this step will take India forward as a big tourism hub. At the same time, Hotel and Restaurant Association (FHRAI) President K Shyama Raju said that now hotels will become more attractive for both foreign and domestic tourists. This will increase the booking rate and the entire sector will benefit.
Bookings will increase during festivals and weddings
Ajay Bakaya, chairman of Sarovar Hotels, says that this decision will further increase people’s confidence. At the same time, Ankit Pathak, CFO of Ebix Travels, says that with the 5% GST slab, people will move towards new destinations. During festivals and wedding season, the demand for travel is the highest.
