New Delhi, Sept. 25 -- The Hotel and Restaurant Association of Western India (HRAWI) has urged the government to reconsider recent changes in the Goods and Services Tax (GST) structure for the hospitality sector.

The association stated that while the sector contributes nearly 5.8% to India's GDP and employs over 32 million people, the revised GST norms could hinder growth, increase costs, and affect competitiveness.

As per the new rules, hotel rooms priced up to Rs 7,500 per night will now attract a reduced GST of 5%, down from 12%. However, these hotels will no longer be eligible for Input Tax Credit (ITC).

HRAWI argued that the removal of ITC defeats the very purpose of GST, which was introduced to eliminate cascading taxes and ensur...