Good news: Your stay at luxury hotels to be less expensive from today
Staying
at a mid or top-end hotel will be less taxing from today, as the new
goods and services tax (GST) rates kick in. On September 20, the GST
Council had slashed GST rates for mid- and high-segment hotels and
six per centage points and 10 percentage points, respectively.
So
now, travellers staying in a hotel room costing over Rs 7,500 per
night will have to pay GST at the rate of 18 per cent, against 28 per
cent earlier. Similarly, for mid-segment hotels (in the price range
of Rs 2,501 to Rs 7,500), the GST rates has been reduced to 12 per
cent from 18 per cent.
While
hotels in the price range of Rs 1,001 to Rs 2,500 will continue to
attract a levy of 12 per cent, rooms that cost less than Rs 1,000
remain in the zero GST bracket.
The
move, aimed at giving a boost to the hospitality sector, was welcomed
by the hotel industry, which said it could provide a major fillip to
the hospitality and tourism sectors.
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