Hotel Industry warns tourism will suffer at 8% GST on room

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The Hotel and Restaurant Association of Western India (HRAWI) on Monday said the Government’s 4-tier structure in GST, in which the service sector will be taxed at 18%, will cause the tourism sector a major setback. In the recently concluded meet on GST, the Govt has declared a 4-tier structure of 5, 12, 18 and 28% of which the service sector will be taxed at 18 %. “It is estimated that the lower GST rate of 5% will contribute to a decrease in our CAD, increase in the GDP, doubling up of both foreign and domestic travel and also doubling up of tourism induced employment,” HRAWI President Dilip Datwani said.   

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