Plea to bring down GST
Posted on: 31/Oct/2017 2:34:58 PM
There is a suggestion placed before the government that requests for reducing the Goods and Services Tax rate to 18 percent – your cost of eating is going to get reduced, voila!
This has overwhelmed the hotel association on the whole. Thus, the Group of Ministers (GoM) will make it look more attractive. Accordingly, the below changes are likely
- GST quoted for hotel rooms with tariff above Rs 7,500 per night will reduce from the present 28 percent to 18 percent for restaurants
- GST quoted for hotel rooms with tariff below Rs 7,500 per night will reduce to 12 percent for restaurants
There are complaints that the hospitality sector is badly hit due to high rates. Earlier, the GST quoted on five-star and luxury hotels was reduced from 28 to 18 percent, thus making it equivalent to GST of AC restaurants. About 30 to 40 percent revenue of 5-star hotels is obtained through food and beverage.
The composition scheme for GST is open to manufacturers, restaurants and traders who have a turnover of not more than a crore. Earlier, this threshold was Rs. 75 lakh and GST Council has increased this to a crore from 1st October so that it would benefit traders and manufacturers. It is easy to comply with and also has very less paper work.
