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GST: Booking a Rs 5,000-plus hotel room? Be ready to pay more

The real good news is for small hotels with tariffs below Rs 1,000, which have been exempted

Shubham Parashar  |  Mumbai 

Staying in luxury hotels with tariffs above Rs 5,000 will cost you more as the service tax under the new GST regime has been set at 28 per cent. Experts consider this a regressive move, especially at a time when occupancy levels in metros and tier-II cities are on the upswing.  On an average, effective tax rate on hotels in Maharashtra are between 19 per cent and 20.5 per cent. This subsumes nine per cent service tax and 10 per cent luxury tax for hotels in general and 10.5 per cent service tax and 10 per cent luxury tax for hotels with banquet facilities. “A difference ...

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GST: Booking a Rs 5,000-plus hotel room? Be ready to pay more

The real good news is for small hotels with tariffs below Rs 1,000, which have been exempted

The real good news is for small hotels with tariffs below Rs 1,000, which have been exempted Staying in luxury hotels with tariffs above Rs 5,000 will cost you more as the service tax under the new GST regime has been set at 28 per cent. Experts consider this a regressive move, especially at a time when occupancy levels in metros and tier-II cities are on the upswing.  On an average, effective tax rate on hotels in Maharashtra are between 19 per cent and 20.5 per cent. This subsumes nine per cent service tax and 10 per cent luxury tax for hotels in general and 10.5 per cent service tax and 10 per cent luxury tax for hotels with banquet facilities. “A difference ... image
Business Standard
177 22

GST: Booking a Rs 5,000-plus hotel room? Be ready to pay more

The real good news is for small hotels with tariffs below Rs 1,000, which have been exempted

Staying in luxury hotels with tariffs above Rs 5,000 will cost you more as the service tax under the new GST regime has been set at 28 per cent. Experts consider this a regressive move, especially at a time when occupancy levels in metros and tier-II cities are on the upswing.  On an average, effective tax rate on hotels in Maharashtra are between 19 per cent and 20.5 per cent. This subsumes nine per cent service tax and 10 per cent luxury tax for hotels in general and 10.5 per cent service tax and 10 per cent luxury tax for hotels with banquet facilities. “A difference ...

image
Business Standard
177 22