 "At present, taxes on small hotels are capped and most do not have to pay any service tax or luxury tax")
The new goods and services tax (GST) regime is set to make life difficult for small-hotel owners, if the government does not keep them out of the tax ambit.
Till now, owners of small hotels that charge between Rs 1,000 and Rs 1,500 a room a night have been kept away from the ambit of state-levied luxury tax and service taxes charged by the Centre or have been asked to pay a small amount. However, these small players might end up paying as much as 18 per cent in taxes under the new indirect tax regime.
At present,
Till now, owners of small hotels that charge between Rs 1,000 and Rs 1,500 a room a night have been kept away from the ambit of state-levied luxury tax and service taxes charged by the Centre or have been asked to pay a small amount. However, these small players might end up paying as much as 18 per cent in taxes under the new indirect tax regime.
At present,
