GST cut on hotel tariffs Diwali gift for tourism sector: Tourism minister Prahlad Patel

The GST Council on September 20 slashed the tax on hotel tariffs and some goods with a view to addressing sectoral concerns in a slowing economy

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The slashing of GST rates on hotel tariffs and the reduction in corporate taxes is the government's Diwali gift for the tourism sector, Minister of Tourism Prahlad Patel said on September 23.

The GST Council on September 20 slashed the tax on hotel tariffs and some goods with a view to addressing sectoral concerns in a slowing economy.

The tax changes came on the heels of the reduction in corporate tax rates to boost private investments.

"The ministry had made the request for reducing the charges or change the GST slab for the tourism sector. The decision taken by the government is even better than what we thought. This is a Diwali gift for the tourism industry," Patel said while addressing tourism stakeholders at the India Tourism Mart.

"This, along with the reduction in corporate tax rates, has also helped," he added.

To boost job-creating hospitality industry and tourism, the GST (goods and services tax) on hotel rooms with tariff up to Rs 1,000 per night will be nil.

Room tariff between Rs 1,001 and Rs 7,500 per night will attract 12 percent GST as against existing 18 percent.

Similarly, room tariff above Rs 7,500 will attract 18 percent GST as against existing 28 percent.

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