Hospitality industry body seeks 5 pc GST rate

Ahead of the first meeting of the GST Council tomorrow, the hotel and hospitality industry today demanded 5 per cent tax rate on the sector, saying the current rate has worsened their condition.
"We are happy that the government has decided to introduce GST but we want a low tax rate of 5 per cent on the hotel and hospitality industry for at least five years.
"It will result in faster growth of the industry and also enhance government's revenue," Federation of Hotel and Restaurant Associations of India (FHRAI) President Bharat Malkani told reporters.
The demand comes a day before the meeting of the newly constituted GST Council in the national capital.

Malkani said the domestic hospitality industry pays tax in the range of 18-25 per cent, which includes luxury tax and service tax, while in countries like Malaysia, Sri Lanka and Thailand, it is not more than 5 per cent.
High taxes are one of the main reasons why tourists are flocking to these nations and not our country, he said, adding that the industry is suffering huge losses due to this.
Malkani also demanded rollback of total liquor prohibition in Bihar and control on sale of alcohol in Kerala as it has affected the hospitality industry adversely.
The association is holding its first national convention here beginning tomorrow, which is likely to be attended by Madhya Pradesh Chief Minister Shivraj Singh Chouhan and Niti Aayog Chief Executive Amitabh Kant.