Mumbai, Sept. 5 -- The recent Goods and Services Tax reforms reducing the tax rate to five percent for hotels with room rates below Rs 7,500 per night represent a significant opportunity for India's hospitality sector and domestic tourism growth.
The GST Council, led by union Finance Minister Nirmala Sitharaman, announced this reduction from the earlier 12 percent GST rate, effective from September 22.
Dr Shefali Joshi, Dean of the School of Hospitality Management at NMIMS University, has welcomed these reforms as a positive step that will benefit both businesses and travellers. The new tax structure eliminates Input Tax Credit for hotels in this category but provides a substantial reduction in the overall tax burden.
Hotel rooms priced ...