FHRAI wants 28% GST to be levied on hotel slabs above Rs 10,000, instead of Rs 7,500

Advertisement
The Federation of Hotels & Restaurants Association of India (FHRAI), India’s apex body for Hotels & Restaurants has government’s GST rollout this morning. It had earlier appealed to the government to reduce the GST percentage on Restaurants to 18%, from its earlier rate of 28% in Star-hotels, thereby bringing it at par with stand-alone restaurants.
Advertisement



This has come in the aftermath after presentation put forward by FHRAI, for the Government to relook at the present proposal as they had advocated a uniform Hospitality GST at 12% across the country.

Commenting on the development, Garish Oberoi, vice president FHRAI said, “We are happy that the government has continued to exempt hotels under Rs 1000, and hotels charging upto Rs. 2500, which will impact a majority of the hotels in the country. There are certain states where GST will increase the tariffs, which would include UP. UP was earlier in the tax bracket of 14 % (5% & 9% luxury) and this would increase the taxes for Hotels charging between Rs. 2500 - Rs 7500 and take it to 18% from 14%. For hotels charging above Rs 7500 the tax slab will further rise from 14% to 28%, which is very high. We would again request the government to keep the slab at 10,000 for 28% tax. “

“For the restaurants, the step is a welcome one since the government has come with a composite scene for small restaurants Upto a turnover of 75 lakhs under a composite scheme of 5 percent GST, which is a welcome step.”

Advertisement

“The only thing left is for the final update from the ministry for the compliance of these regulations, “he added.

{{}}