Chennai: At a time when the Centre has set into motion Goods and Services Tax (GST) regime incorporating even the tourism and hospitality sectors, hoteliers have come forward with a plea for implementing “one nation, one hospitality tax” rather than follow the differential rates.
While hotels and lodges that charge Rs 1,000 a day or less are exempted from the GST, those levying Rs 1,000 to Rs 2,500 will be taxed at 12 per cent.
Those with a tariff between Rs 2,500 to Rs 5,000 will have to pay 18 per cent tax and small restaurants with an annual turnover of less than Rs 50 lakh will be taxed at 5 % and other non-air-conditioned restaurants will be taxed at 12 % and air-conditioned restaurants will be taxed at 18 %, now.
Seeking uniformity in GST regime, the Hotel and Restaurant Association of Northern India (HRANI), has suggested “One Nation, One Hospitality Tax of 12 % to the sectoral Working group of Travel & Tourism formed by the GST Council.
The representatives of various industry associations like FAITH, FHRAI, HAI, IATO, TAAI, TAFI, ADTOI, ICPB, ITTA, IHHA and ATOAI including HRANI participated in the first meeting of the sectoral working group held on June 10 at the national capital.
The sectoral working group which gave a patient hearing was said to have requested the trade bodies to submit their views at the earliest so as to prepare a comprehensive note for GST Council. The group also asked the industry to send their apprehensions relating to operational and administrative issues or any queries that may be affecting business upon transiting to the GST regime.
The HRANI has appealed for changing the GST slab to minimum Rs 10,000 as a slab of '5,000 did not amount to luxury.
