Hoteliers ask new government to relook at GST structure

GST on Hoteliers: With the third edition of the Narendra Modi government in place at the Centre, the the Hotel And Restaurant Association (Western India) has urged the government to revisit the existing GST structure for F&B served in restaurants within hotels which is presently linked to room charges exceeding Rs.7500.

It advocated for uniform GST rates for all restaurants, whether inside hotels or standalone, to eliminate unfairness and unpredictability. The HRAWI proposes de-linking GST rates from room charges to promote fair competition and ensure industry sustainability.

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“We congratulate and welcome the newly elected Union Government and are optimistic about the future of the tourism and hospitality industries. With the right focus and policies, India can be transformed into a tourism haven for both domestic and international travellers, contributing significantly to the economic growth and development of the country,” said Pradeep Shetty, President, HRAWI.

He also urged the Government to streamline regulatory processes to facilitate Ease of Doing business. Simplifying license procurement, reducing bureaucracy and clarifying regulations will promote growth and innovation within the sector, he said.

“In its last term, the NDA government put a lot of impetus on developing tourism and tourism infrastructure. Hotels and restaurants play a critical role in complementing this development and need equal attention. Any kind of disparity between the two will only pose hurdles in achieving our aspiration of welcoming 100 million tourists by 2047 and achieving a USD 3 trillion tourism economy. We urge the Governments to continue its drive in developing tourist circuits, heritage sites and transportation networks to enhance accessibility and visitor experience,” added Shetty.