New Delhi [India] Sept 23(ANI/NewsVoir): Hotel and Restaurant Association of Northern India (HRANI) thanked the central and state government for the reduction in GST rates on hotel room tariffs in a bid to give a boost to the hospitality sector.
The GST Council in its meeting on Friday approved the proposal to cut rates on hotel tariffs. The tax on room tariff of up to Rs 7,500 has been slashed to 12 percent from the existing 28 percent. There will be no GST on room tariffs of below Rs 1,000 per night.
"HRANI is thankful to the Ministry of Finance, Ministry of Tourism and all members of GST council including all Chief Minister and Finance Minister of States of India for their support extended to the hospitality industry," said Surendra Kumar Jaiswal, President, HRANI and Vice President, FHRAI.
Recently, HRANI met Anurag Singh Thakur, Minister of State for Finance. A delegation led by Surendra Kumar Jaiswal, President, HRANI comprising of MC Members Vineet Taing, Pradeep Narayan Singh, Vinod Gulati, Amit Jain along with Renu Thapliyal, Secretary-General met the Hon'ble Minister. The delegation had submitted a detailed representation on Rationalization of GST for Hospitality the sector to the Hon'ble Minister.
HRANI had requested for one tax for hospitality at the rate of 12 per cent with full ITC irrespective of the room tariff as a lower rate of GST will increase the influx of Tourist inducing more employment, across each state and nationally.
"I am happy to share with you that HRANI has always put in all efforts and represented for one tax of 12 percent with full ITC. Various representations through meetings were sent to the Ministry of FinanceTourism, Govt. of India including Chief Minister and Finance Ministers of nine states," said Oberoi, Treasurer, HRANI and Immediate Past President, FHRAI.
While thanking the Government, Jaiswal also stated that the association will continue to represent for further rationalization of GST to one tax regime for hotel rooms, banquets. He also urged for re-introduction of the input tax credit for Restaurants.
Non-availability of ITC for Restaurants who pay huge rentals as being located in Malls, Commercial Markets, Business Centres and Airports are reeling under financial pressure. It is really causing hindrance in the growth and expansion of the Restaurant Sector added Jaiswal.
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