The GST council on Friday has slashed the rate on hotel room tariffs. The move aimed at giving a boost to the hospitality sector.
Finance Minister Nirmala Sitharaman announced nil tax for those with tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night room tariff would be levied with 12 percent tax as against the existing 18 percent.
Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 percent from the existing 28 percent. Also, tax on outdoor catering has been reduced to 5 percent from existing 18 percent with the input tax credit, she said.
|Hotel Tariff||New GST Rates|
|Up To Rs 1,000 Per Night||NIL|
|1,001 To Rs 7,500 Per Night||12%|
|Tariff Of Above Rs 7,500||18%|
The above revised rates will be effective from 1 October 2019.
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