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GST rates on hotel room tariff slashed
Business

GST rates on hotel room tariff slashed

Agency News

Panaji, Sep 20 : Goods and Services Tax Council (GST) Council on Friday announced cut in GST rates on hotel room tariff.

Addressing a press conference in the city, Union Finance Minister Nirmala Sitharaman, who chaired 37th GST Council Meet, said,''If a hotel room is priced above Rs 1001, that is above Rs 1000 and up to Rs 7500, now it will attract 12 per cent only. Anything above Rs 7500 will attract 18 per cent. Hotel industry has now come under three slabs."

She said rooms which cost Rs 1000 per day were exempt from GST.Currently GST imposed on rooms costing above Rs 7500 is 28 per cent while rooms priced between Rs 2500 and Rs 7499 is 18 per cent.

The decision follows hectic lobbying by the tourism industry stakeholders in the state who were demanding cut in the GST on room tariff. The council also announced bringing of hotel outdoor catering services under a lower tax bracket. (UNI)