GST Structure of Hotels should be relook; Hoteliers ask the New Government

Hotel and Restaurant Association Western India (Mumbai) congratulates the Narendra Modi government for their third term at the center and has asked the government to modify the current GST structure on Food and Beverages served in restaurants or dining outlets within hotels that are currently linked to room charges exceeding Rs.7500.

It called for standard GST rates for all restaurants, whether within hotels or on their own, to avoid inequality and inconsistency.

Pradeep Shetty, President of HRAWI (Hotel and Restaurant Association Western India) stated, “We extend our greetings to the newly formed Union Government and we believe they will propose the right policies in the area of tourism and inject the necessary emphasis on the tourism sector to transform it into a heaven for international and domestic tourists and make it a highly preferred tourist destination. This sector significantly contributes a huge amount towards the growth of the Indian economy.”

He also called on the government to simplify the processes for Ease of doing business. Key issues such as license procurement, bureaucracy and regulations should be addressed in order to spur growth and development in the sector.

The HRAWI has also suggested the government de-link GST rates from room charges so that fair competition can be obtained for the benefit of the required industry sustainability.