Shares of hotel and hospitality companies advanced after reduction in the rate of Goods and Services Tax (GST) on hotel accommodation service.
Meanwhile, the S&P BSE Sensex was up by 774.64 points, or 2.04% to 38,789.26.
Lemon Tree Hotels (up 8.09%), Indian Hotels Company (up 7.79%), Taj GVK Hotels & Resorts (up 5.62%), Oriental Hotels (up 5.18%), Hotel Leela Venture (up 3.72%) and EIH (up 3.49%) advanced.
The GST Council on Friday, 20 September 2019, decided to lower GST rates on hotel tariff and outdoor catering, giving a boost to the hospitality sector. On the hotel tariffs front, daily room tariff beyond Rs 7,500 per day will attract GST at the rate of 18% as against existing 28%. Room tariff between Rs 1,000 and Rs 7,500 will continue to attract 12% GST. There will be no GST on room tariff up to Rs 1,000.
The GST Council has also decided to slash the rate on outdoor catering to 5% from 18%. However, no input tax credit (ITC) will be available to them.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)