 "Select hotel & restaurant shares gain on GST rate change")
Shares of hotels & restaurant companies rallied up to 16% on the BSE in intra-day trade in otherwise subdued market after the Goods and Services Tax (GST) Council decided to reduce the tax rate for all restaurants, barring those in luxury hotels, to 5%, without any input tax credit.
Restaurants in hotels with room tariff of Rs 7,500 and above per day will attract 18% GST with full input tax credit.
Among the individual stocks, Royal Orchid Hotels hit a 52-week high of Rs 156, up 16%, and Speciality Restaurants rallied 8% to Rs 127 on the BSE in intra-day trade.
Restaurants in hotels with room tariff of Rs 7,500 and above per day will attract 18% GST with full input tax credit.
Among the individual stocks, Royal Orchid Hotels hit a 52-week high of Rs 156, up 16%, and Speciality Restaurants rallied 8% to Rs 127 on the BSE in intra-day trade.
Asian Hotels (West), Jindal Hotels, Advani Hotels, EIH Associate Hotels and Coffee Day Enterprises are among those trading 2% to 8% higher, as compared to 0.28% decline in the S&P BSE Sensex at 10:56 AM.
According to PTI report, the Hotel and Restaurant Association of Eastern India (HRAEI) said the GST Council's decision to cut tax rate for restaurants to 5% without input tax credit comes as a big relief for the industry.
"We are very happy with new GST slab announcement for restaurants. Our proposals were considered with due importance and this announcement is a big relief for the hospitality sector," HRAEI President Sudesh Poddar said in a release.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| ROYAL ORCH.HOTEL | 149.15 | 134.55 | 10.9 |
| ASIAN HOTELS (W) | 324.00 | 302.00 | 7.3 |
| JINDAL HOTELS | 62.50 | 59.00 | 5.9 |
| SPECIALITY REST. | 124.30 | 118.25 | 5.1 |
| HOWARD HOTELS | 6.80 | 6.48 | 4.9 |
| HOTEL RUGBY | 3.22 | 3.07 | 4.9 |
| FOMENTO RESORTS | 160.00 | 152.70 | 4.8 |
| ADVANI HOTELS. | 65.35 | 62.55 | 4.5 |
| THE BYKE HOSPI. | 159.70 | 152.95 | 4.4 |
| ARAMBHAN HOSPIT. | 36.00 | 34.50 | 4.4 |
| EIH ASSOC.HOTELS | 370.00 | 355.00 | 4.2 |
| BEST EASTERN HOT | 67.85 | 65.25 | 4.0 |
| VICEROY HOTELS | 17.55 | 16.90 | 3.9 |
| SINCLAIRS HOTELS | 416.80 | 401.35 | 3.9 |
| ASIAN HOTELS (E) | 279.00 | 274.15 | 1.8 |
| ORIENTAL HOTELS | 39.30 | 38.65 | 1.7 |
| COFFEE DAY ENTER | 231.90 | 228.15 | 1.6 |
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