You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Hotel stocks climb on likely GST cut on luxury hotels

Capital Market 

Shares of hotel and hospitality companies advanced on anticipation of reduction in Goods and Services Tax (GST) for five-star hotels.

Meanwhile, the S&P BSE Sensex was up by 133.59 points, or 0.37% to 36,614.68.

Taj GVK Hotels & Resorts (up 7.69%), Hotel Leela Venture (up 6.12%), Indian Hotels Company (up 3.27%) and EIH (up 0.57%) jumped. Lemon Tree Hotels slipped 0.27%.

According to the media reports, GST council, in its next meeting, could rationalize rates for five-star hotels to provide relief to the hospitality industry. The 37th GST council meeting is scheduled to be held on Friday, 20 September 2019, in Goa.

Currently, five-star hotel rooms with a tariff of Rs 7,500 per night and above attract a GST rate of 28%.

The fitment panel, comprising Central and State officials, has reportedly recommended cutting the GST rate on luxury hotel category from 28% to 18%, or increasing the room tariff threshold from Rs 7,500 to Rs 10,000 per night.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 18 2019. 13:11 IST